Derry City fell 1-0 to derby rivals Finn Harps in the second round of the FAI Cup at Ballybofey on Friday night.
Babatunde Owolabi scored the winning goal from the penalty spot in the 74th minute after Ryan Rainey was adjudged to have been fouled by Ronan Boyce.
City keeper Nathan Gartside had done well to push behind Adam Foley's effort on the hour mark.
Harps' ex-Candystripes stopper Ger Doherty denied Evan McLaughlin's low drive and Daniel Lafferty's late shot.
Finn Harps have now won five matches in a row and they await Tuesday evening's quarter-final draw.
For Belgian Owolabi, his match-winning display came on the back of a hat-trick last week against St Patrick's Athletic.
The hosts had never previously defeated Derry in an FAI Cup tie but emerged on top this time after a game of relatively few chances.
Doherty, who racked up 324 appearances for Derry, was making his debut for Ollie Horgan's side after having left Crusaders.
"I'm really disappointed - I thought we were quite laboured at times and our performance didn't reflect how we have played over the last month," said Derry manager Ruaidhri Higgins after the game.
"The players have been exceptional but we have to use this defeat as ammunition and use that hurt to drive us on for the remainder of the season.
"We were flat and lacked a bit of composure on the ball, lacked a bit of individual responsibility in key areas. We didn't create enough either.
"Finn Harps set up really well and nullified our threat."