Both sides had their chances, but in the end a draw was a fair result at Buckley Park.
Dundalk looked the team of all the talents during the opening half and before David Hoey scored in the 29th minute, they had threatened to destroy lethargic Kilkenny.
During the break Kilkenny manager Pat Byrne had some severe words for his players. The scolding worked, the equaliser coming on 62 minutes via a superb 20-yard free-kick.
Finn Harps's tie against Home Farm Fingal on Saturday was called off due to a waterlogged pitch.
KILKENNY CITY: R Forde; N Keogh, R Carolan, M Kerley, D Breen, B Flood, D Walsh, A Forde, H King, P Scully, B Jordan. Subs: J Prizeman for King (injured, 22 mins), M Mearns for Jordan (injured, 39 mins).
DUNDALK: B Murphy; P Campbell, D Crawley, J Sharkey, P Whelan, N Melvin, D Hoey, J Flanagan, D Ward, T Izzi, B Morrisroe. Subs: P Gollogley for Campbell (57 mins), A Reilly for Ward (70 mins).
Referee: T Tully (Cork)