Barnsley were already three goals in front by the time the Clarets' leading scorer arrived in spectacular style.
But his late heroics were not enough to deny Simon Davey's side a win that dented Burnley's lofty ambitions.
Barnsley swept in front after 18 minutes when Jon Macken rammed home a super cool shot to beat Brian Jensen after Rob Kozluk's clever ball over the defence.
Jamaica international Jamal Campbell-Ryce was in sparkling form and came close to a second before striker Kayode Odejayi blew an incredible opportunity with a spectacular miss.
Then, early in the second half, the home side claimed two goals in as many minutes which looked certain to kill off the Clarets.
Campbell-Ryce raced forwards and drove in a 25-yard shot that deflected off Simon Whaley and flew past Jensen as Burnley appealed for an offside flag.
Burnley were still protesting when the Tykes hit again after the visitors failed to clear a corner.
Spanish midfielder Diego Leon reacted smartly when the ball was played back in and cracked a low shot past Jensen.
Owen Coyle brought on Paterson and sparked a late revival that gave TV viewers a fantastic finale.
After 69 minutes he slid a low shot past Heinz Muller for his eighth goal of the season and four minutes later Barnsley were caught out again.
Paterson turned Kozluk inside out before cutting in and lashing a fierce drive inside the post.
And Muller crowned an incredible display with a fantastic save tipping over a Chris McCann pile-driver.
Four minutes later the giant German somehow denied Chris Eagles from close range when the ex-Manchester United man looked certain to score.