The hosts looked in complete control up by 14 points with seven minutes to go, but a late double to Sam Burgess set up a dramatic final minute with a Cody Walker kick just eluding Aaron Gray from the last play of the game.
The Rabbitohs looked the better side in the first half and even led with 22 minutes to go but were eventually run down by a Penrith team desperate to celebrate skipper Peter Wallace's 200th NRL game with a win.
