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The two players settled for a quiet draw in 30 moves after one-and-a-half hours of play in game two.
The champion will be decided in the tie-breaks on Thursday.
Carlsen played a solid game with white pieces against Praggnanandhaa. The teenaged Indian did not face any troubles with black pieces, with the players agreeing to a draw after 30 moves in an equal Bishop ending.
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The first game on Tuesday had ended in a stalemate after over four hours of play and 70-plus moves, following which Carlsen said he was a bit under the weather. The 18-year-old Praggnanandhaa had stunned world No. 3 Fabiano Caruana on Monday via the tie-break in the semifinals to set up a summit clash with Carlsen at the World Cup.
Praggnanandhaa, thus, became the third youngest player after the legendary Bobby Fischer and Carlsen to qualify for the Candidates tournament.