Stephen Elliott's second-half strike set up a thrilling win for Preston, which moves them up to fourth.
Callum Davidson converted a fourth-minute penalty to put the hosts ahead after Alex Bruce brought down Elliott.
Tommy Miller equalised from Luciano Civelli's through-ball but Preston were in front at half-time after Jon Parkin capitalised on a defensive mix-up.
Elliott finished at the far post to make it 3-1 but Miller's superb 20-yard free-kick set up a frantic finish.
Preston manager Alan Irvine: "This was a vast improvement. We talked during the week about getting back to basics and the training has been geared around that.
"A lot of harsh words were spoken last week and this was a fantastic reaction and I'm delighted to be back in fourth.
"We wanted to make sure we got back to doing the things you must do to compete in this division."
Ipswich manager Jim Magilton: "My gut feeling is that we should have got something from the game.
"We were a little bit hit and miss - from the first goal to the last, there were poor defensive errors, yet in between we were very good at times.
"We looked like we were trying to get something out of the game. Our attitude and application was first class and we're going to have to continue that."
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