Goals from forwards Rory McAllister and Fraser McLaren pushed Stirling out of the top four and effectively the title race as Peterhead won away at Stirling, writes Joshua King.
The visit of the league leaders saw the Binos lose at home for the first time since September 14.
After the match, Blue Toon manager Jim McInally said: “I thought we played well for most of it.
“It was tough with the weather and the Forthbank pitch isn’t very good.
“The worrying thing was that at half time we weren’t more than one goal up.
“That was my main concern because we could have put it to bed in the first half.
Peterhead started the first half the stronger but were forced into an early substitution when full back Graeme Sharp took a knee to the back of the head.
Sharp later required stitches but the injury is not thought to be serious.
The Blue Toon took the lead when hitman Rory McAllister reacted fastest to a Danny Ashe error, rounding Callum Reidford in goals to score.
McAllister should then have taken his tally to the season so far to an impressive 18, but fired wide.
Partner Andy Rodgers was also unfortunate to have an effort chalked off for offside.
The equaliser came less than ten minutes into the second half when Jordan White nodded in a Craig Comrie corner.
The Binos tails were up now and Comrie could have put the home side into the lead but dragged his shot wide.
Then subsitute Fraser McLaren, a replacement for Bryan Gilfillan, won the game with a 67th minute strike.
Peterhead: Smith, Sharp (McCann), Smith, Strachan, Ross, Noble, Redman, Gilfillan (McLaren), Brown, Rodgers (McGlinchey), McAllister;
Unused: MacDonald (GK), Buchan, Richardson;