This was a crucial match for both in-form sides. Peterhead had won all their games in December and visitors Clyde had won the last three and were unbeaten in nine.
Manager of the month Jim McInally started with Cameron Eadie in defence ahead of Jason Brown.
A lively opening saw both sides show their attacking intent with the ball being moved at pace and each side taking turns to try and open the scoring.
As the quarter hour approached the visiting fans were claiming a penalty when John Rankin went down under a challenge from Eadie but referee Graham Beaton waved play on.
After 20 minutes Clyde had a good chance, full back Jordan Stewart with a long, diagonal ball to David Goodwillie but after cutting into the right side of the penalty area, a combination of Eadie and keeper Greg Fleming blocked his shot.
Peterhead had plenty of the ball with most attacks coming down the right flank but the goal, when it arrived in the 20th minute, was pure farce.
Stewart attempted to chest the ball back to Blair Currie from 12 yards out but the ball went past the keeper, hit the left hand post with Ryan Dow touching home from a couple of yards out.
The second half started in the same open fashion as the first but it was Clyde who looked like posing the bigger threat driving forward with pace and a low Mark Lamont shot on the hour was only a fraction past the upright.
The Blue Toon almost immediately had a chance themselves, Willie Gibson lofting a pass over the heads of the Clyde defence only for Jack Leitch to tamely shoot straight at Currie.
The visitors continued to look impressive on the attack as former Peterhead defender Scott Rumsby shot wildly over following a corner kick from the left but with just five minutes remaining, a David Goodwillie shot hit the post and substitute Ally Love blasted in from eight yards for a deserved equaliser.
Then two minutes later, disaster for the home side as Clyde grabbed a winner, Lamont driving a shot low into the net from the right side of the area.