A fantastic strike from Abdallah Sima had Rangers ahead at the break, before Ibrahim Sangare levelled the tie with 30 minutes remaining. Substitute Rabbi Matondo gave Michael Beale’s side the lead again with PSV captain Luuk De Jong heading home an equaliser late in the game.
It was a repeat of last season’s play-off round, as Rangers and PSV Eindhoven met once again for a place in the UEFA Champions League Group Stage.
Rangers started with Butland in goal and a back four of James Tavernier, Connor Goldson, John Souttar and Borna Barisic.
Ryan Jack, Jose Cifuentes and Nico Raskin were in front of them in midfield, with a front three of Todd Cantwell, Cyriel Dessers and Abdallah Sima.
The atmosphere around Ibrox was electric as Abdallah Sima got the action underway and that seemed to transfer on to the pitch with a fast-paced start to this play-off tie.
Noa Lang tested Jack Butland in the opening period as he got on the end of a ball from Ismael Saibari but the Rangers number one was able to gather at the second attempt.
Good play from Rangers saw James Tavernier win the ball before finding Nico Raskin who played a one-two with Todd Cantwell. Raskin, on receiving the return, fed the ball out wide to Sima, with Borna Barisic providing the support on the overlap, but the left-back’s ball into the box was deflected into the arms of Walter Benitez.
With just over 20 minutes on the clock, another opportunity opened up for Rangers in front of goal. Cyriel Dessers managed to flick the ball into the path of Abdallah Sima to release the on-loan Brighton man who used his pace to drive into the box and get a shot away at goal but it was held by Benitez.
From another Rangers attack, PSV hit on the break with Johan Bakayoko racing towards goal. He opted to take the shot himself, releasing a powerful effort on target but Butland was able to gather.
Before the break, Bakayoko came close again as he cut in from on the right, creating space for a strike at goal but it curled wide of Butland’s left-hand post.
With just seconds of the first-half remaining, Michael Beale’s men were ahead and it was a fantastic strike from Abdallah Sima. The goal came from Rangers’ pressing as Nico Raskin and Cyriel Dessers put pressure on the PSV back line with Raskin able to nick the ball inside the box.
Dessers, who was in support in the box, picked out Sima on the edge of the area and he curled a perfect strike into the top corner.
Into the second-half, Ismael Saibari sent a shot just over as PSV looked for a response early after the break.
Joey Veerman tried an effort from a free-kick which PSV were awarded 25-yards out, but Butland was able to stretch to get a strong connection on the ball to push it out for a corner for the visitors.
With half an hour of the game remaining, PSV equalised at Ibrox. A cross met Johan Bakayoko on the right and he sent the ball back into the box. Ismael Saibari left it for Sangare who was in space and managed to find the back of the net with a powerful right-footed strike.
Beale turned to his bench for the first time of the evening with 66 minutes on the clock at Ibrox as John Lundstram and Rabbi Matondo were introduced in place of Abdallah Sima and Ryan Jack.
Rangers were ahead again in this match, and it was substitute Rabbi Matondo who got on the scoresheet. It was a lovely team goal from the Light Blues as Todd Cantwell released Cyriel Desssers on the right and he played a perfect pass to pick out the run of Matondo who had made a darting run into the box and he showed composure to finish low beyond Benitez.
The lead didn’t last long however, with PSV drawing level less than five minutes later. A corner was swung into the box by Bakayoko which met the head of captain Luuk De Jong and he headed beyond Butland.
Rangers had a fantastic opportunity late in the game as James Tavernier found Sam Lammers in the box. He turned well to get a shot away but it was blocked by a PSV body before Danilo’s rebound was also deflected wide with a corner awarded to the home side.
From a Borna Barisic corner in added time, Rabbi Matondo almost had Rangers in front again with a spectacular strike as the ball fell to him on the edge of the box, but it curled just over the bar.
The sides will meet again next Wednesday evening with the tie finely poised ahead of the second-leg in Eindhoven.
RANGERS: Butland, Tavernier, Goldson, Souttar, Barisic, Cifuentes (Dowell, 80), Jack (Lundstram, 67), Raskin, Cantwell (Lammers, 86), Dessers (Danilo, 80), Sima (Matondo, 67).
Subs: McCrorie, Sterling, S. Wright, Davies, Balogun, King, Devine.
PSV: Benitez, Teze, Ramalho (Schouten, 89), Sangare, Lang (Vertessen 81), Dest, De Jong, Bakayoko, Boscagli (Babadi, 89), Veerman, Saibari (Til, 69).
Subs: Drommel, Waterman, Sambo, Tillman, Pepi, El Ghazi, Land.
Referee: Clement Turpin