With Hull and West Brom drawing earlier in the day, the Canaries had the chance to close to within a point of the play-off places.
They looked on course to do so after their early superiority was reflected in Marcelino Nunez’s brilliant 22nd-minute opener – his first goal of the season.
But they could not add a second and Blackburn fought back, deservedly equalising through Dominic Hyam’s first goal in 17 months.
Boss Wagner said: “Offensively we played some good football, played from our structure, created enough to score more than only one goal.
“I’m frustrated at the result, not to win this game after the opportunities which we created, after we got the lead.
“To concede off a set piece, off the corner, this is what frustrates a little bit, but the performance was good.
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