Forfar were the first to go close with six minutes gone, David King crossed from the left and David McClune powered a header over the crossbar.
Seven minutes later another header threatened the home goal, this time it was Paul Lunan with an effort past the post following a corner kick.
Forfar deservedly went in front after 23 minutes. Kevin Nicol was caught in possession midway inside his own half, Andy Jackson pounced, bore in on goal and finished with a low shot past keeper Paul Mathers from 12 yards.
Peterhead were rarely seen in attack and it was 21 minutes before their first shot from Bobby Linn which went across goal and beyond the far post.
Peterhead responded to going behind with two shots off the woodwork. First Dougie Cameron sent a 20-yard-free kick crashing off the crossbar, followed moments later by a Linn shot off the post.
Nine minutes before the break Linn looked set to score as he raced past keeper Sean Murdoch but just as he was about to shoot Forfar defender Alan Rattray stopped his progress with a perfectly timed tackle.
Peterhead began the second half on the attack and a Graeme Sharp shot was deflected out for a corner in the 49th minute followed a minute later by another as the home side kept up the pressure.
Despite the possession Peterhead failed to threaten until they drew level in the 68th minute. Nicol crossed from the right side of the penalty area and substitute Martin Bavidge, only on the pitch five minutes, bulleted a header high into the net from the corner of the six-yard box against his former side.
Linn should have given Peterhead the lead 12 minutes from the end but sent his shot well over the crossbar after a Bavidge cut-back.