Villa played Arsenal off the park and it was definitely a case of two points lost rather than one gained for the home side in this thrilling Boxing Day encounter.
Much criticised defender Zat Knight popped up with just three minutes remaining to salvage a draw for Villa but it was no more than they merited after hitting the woodwork three times during the first half.
The Gunners, who had been on the back foot for almost the entire 45 minutes, scored a shock opener on the brink of half time as Denilson took advantage of slack Villa defending to slot home.
The whole stadium was stunned, even the Arsenal fans looked too embarrassed to celebrate but they did nonetheless.
What could Martin O'Neill say to his side during the break?
They should have been at least two goals in front before the Brazilian midfielder put the Gunners ahead.
Steve Sidwell had Villa's first effort as he headed against the bar from a Gareth Barry corner. Curtis Davies then missed a free header to let Arsenal off the hook once more.
Villa were simply running riot and the Gunners had no response. Next, Luke Young hit a fizzing drive from outside the area which was superbly tipped over the bar by Manuel Almunia.
Mountain
Gabby Agbonlahor then tested the Spanish keeper with a low drive which he could only parry into the path of the onrushing Sidwell.
But, thankfully for the Gunners stopper, William Gallas rushed back to make a crucial block.
Arsene Wenger looked beleaguered as James Milner was next to have an effort on goal - his acrobatic shot hit the post and rebounded fortunately into Almunia's arms.
And to round off an exhilarating 40 minute spell from the home side, Curtis Davies hooked a shot onto the Arsenal bar, which spat the ball to safety.
Wenger and his men knew they had been given a reprieve and then Denilson struck.
Villa were left in disbelief and that sense of bewilderment continued into the opening stages of the second half.
O'Neill's men never really came back out for the first ten minutes and Arsenal took advantage as Emmanuel Eboue played in Abou Diaby who finished with aplomb.
Villa, despite their dominance, now had a mountain to climb and it didn't look as though they had brought their pickaxes as Robin Van Persie hit the post when presented with a good opportunity to seal the game. Davies then made a good block before Villa started to revive themselves.
The home side were given the ideal chance to get back into the game as William Gallas, just as he did at the Emirates last month, failed to deal with Agbonlahor's pace.
Lucky
The England front man got to a long ball first and Gallas brought him down inside the area. The referee pointed to the spot and when Gareth Barry lashed home in front of the Holte End, hope was restored.
Villa started to believe again and began to pour forward as they had done during their excellent first 40 minute performance.
Despite having the lion share of possession Villa couldn't find a way through the lucky Gunners defence. But, with added time being played cue big Zat Knight.
The local boy became the local hero as he hit a sweet half volley into the previously charmed away net.
Scenes of utter adulation ensued and Knight was mobbed by his team mates. It was all reminiscent of the amazing closing minutes at Everton just a couple of weeks ago.
A below par Arsenal team were left wondering just how they had come out of the contest alive, never mind with a point to their name.
This was the poorest Gunners side seen at Villa Park for many a year but the best in Claret and Blue for just as long.
Could it just be that Villa are capable of overthrowing one of the seemingly immovable top four?
On this performance, anything is possible.