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Dunne had given Aston Villa a half-time lead with his first goal since his £6million move from Eastlands, outjumping former Villa midfielder Gareth Barry.
But Craig Bellamy rescued a deserved point for Mark Hughes' side midway through the second period.
Barry was booed throughout the 90 minutes by the Villa fans on his first return since his £12million summer transfer to City and did not have one of his most influential games.
But Dunne was excellent at the back for Villa and he was applauded by both sets of fans after not celebrating his goal in an elaborate manner.
It was a stark contrast to the over-the-top reaction from City striker Emmanuel Adebayor after he had scored against his old team Arsenal last month.
Villa had the better of the opening 45 minutes, closing City down effectively but also looking threatening when going forward with John Carew causing problems.
But City were more menacing after the break despite Dunne and James Collins making many crucial interceptions at the heart of the Villa back four.
