Woods was 1 down in his match with Brandt Snedeker when the pair reached the par-4 10th hole at Austin Country Club.
And the 14-time major winner appeared a lock to lose the hole when his approach shot sailed well long and underneath a bush.
But Woods, kneeling and holding an iron left-handed, gouged his ball out from under the branches and watched it roll down within about five feet of the flag.
He duly made the par save to remain one down but the epic recovery didn't inspire a trademark Woods comeback and he eventually lost the match 2&1.
WOW!March 28, 2019
Marc Leishman heads the Australian challenge, one of only 10 players undefeated through their first two round robin matches.
Leishman beat Russell Knox 2 up and if he beats Bryson Dechambeau tomorrow in his final round robin match he will be assured of advancing to the round of 16.
Jason Day's hopes ended with a second straight loss, this time a 4&3 defeat to Henrik Stenson.
Cameron Smith is also 0-2 and assured of an early exit from the tournament following a second round loss at the hands of reigning Australian Open champion Abraham Ancer.
Want video tips delivered straight to your inbox? Subscribe to iseekgolf.com newsletters.