In what was a pulsating Champions League encounter from start to finish, Pep Guardiola's men turned it around in 13 breathtaking minutes to give Mauricio Pochettino a taste of the quality he'll be up against in the Premier League if he does take over at Manchester United.
The future of the Argentine has dominated the headlines this week, with the Red Devils making him their top managerial target following Ole Gunnar Solskjaer's sacking last weekend.
He will know that his side were second best at the Etihad, though, with the result seeing City top Group A to give them a favourable round of 16 draw, a reward richly deserved for the Premier League club.
In what was a supremely dominant first-half from the Premier League champions, City almost opened the scoring with five minutes on the clock as Presnel Kimpembe brilliantly diverted Rodri's looping header away from the goal-line.
PSG looked dangerous on the counter with their star-studded frontline - viewed by many as the best in world football - breaking with pace and precision every time they retrieved possession.
Neymar had the visitors' first shot of the encounter but his effort was blocked by Ruben Dias.
Minutes later, Achraf Hakimi then prevented a certain goal as he rose highest to head Riyad Mahrez's effort over the bar in what was a superb bit of defending.
Marquinhos then became the next player to make a crucial block for PSG as he dived down to stop Oleksandr Zinchenko from point blank range.
City came inches away from taking the lead once again when Ilkay Gundogan rifled a shot against the post after superb work by Joao Cancelo on the wing.
Seconds later, Keylor Navas diverted a low effort from Mahrez out for a corner as the pressure was ramped up even more by Guardiola's men.
Kylian Mbappe fired over PSG's best chance of the half with minutes of the half remaining.
Despite the barrage of City attacks, the game somehow went into half-time all square.
Just minutes after half-time, it was the visitors who took the lead as Mbappe fired home from Lionel Messi's pass for his 29th goal in the competition and ninth goal of the season.
It, unsurprisingly, came from a counter attack, with Messi's deflected pass finding the Frenchman, who rifled through Ederson's legs to stun the Etihad into silence.
Mahrez almost fired City level shortly after but for a great block from Keylor Navas as City looked to answer immediately.
And they finally got their deserved goal in the 63rd minute when Raheem Sterling fumbled his shot over the line to level the scoreline with little over half an hour remaining.
Kyle Walker laid the ball for his England teammate on a plate after a magnificent pass from Gundogan found him in acres of space on the right flank.
Neymar squandered a brilliant opportunity to get PSG back in front as he jinked past John Stones before firing wide of the post before City claimed a deserved lead 14 minutes from time through substitute Jesus.
The Brazilian tucked in from close range after Bernardo Silva laid off a Mahrez cross.
It was ninety minutes which once again demonstrated just how entertaining the Champions League is.
And who knows, maybe Pochettino and Guardiola will meet in the dugout again in the near future as the Argentine continues to be linked with the Man United hotseat.