CITY suffered a blow to their Irn-Bru Third Division play-off hopes as visitors Stranraer hit back from a goal down to notch a 2-1 win at Borough Briggs.
The Black and Whites snatched a second half lead against the run of play when Archie MacPhee fired home after his spot-kick had been saved.
The Blues, however, deservedly made it three wins and a draw against City this term with counters from Mike Moore and Steve Stirling.
The defeat reduces City's advantage over Annan Athletic to six points in the wake of the Borders 4-0 stroll at East Stirling.
With a treacherous trip to Alloa next up, the home clash against Annan on April 14 could prove vital in the race to clinch fourth place in the table.
City's line-up had a more familiar look about it with the return from suspension of deputy skipper David Niven and back four colleague Jamie Duff.
Mark Durnan was still suspended, with Paul McMullan retaining his place after last week's win at Clyde. Assistant manager Barry Wilson, a stalwart in defence at Broadwood, dropped to the bench alongside Stuart Leslie and Paul Millar, who were both returning from injury.
The visitors, looking to consolidate their second top spot, started briskly and Elgin keeper Zander Clark, later nominated as Man of the Match, was called into action after just three minutes. The on-loan St Johnstone stopper denied Malcom from opening the scoring and two minutes later a Grehan effort was parried away by the big keeper.
The Blues were dominating the early stages and Clark again had to be on his toes in 19 minutes to deal with a close range shot from Winter.
Jason Crooks raised spirits a minute later with a turn and shot which forced Mitchell to claw away and the City striker again brought out another save from the visitors' keeper in 28 minutes.
But it took another couple of saves from Clark to keep City level at the break. A McKeown header was parried away the keeper, who was back on his feet to deal with Grehan's follow-up effort.
City restarted on a positive note and a blocked Gunn effort in 52 minutes fell to Cooper, but the on-loan midfielder shot just wide.
Five minutes later Black and Whites hopes were raised when Borris felled Daniel Moore in the box. Archie MacPHEE'S spot-kick was saved by Mitchell, but the City defender followed up to crash home the opener.
City's hopes of collecting three valuable points, however, were dashed in 67 minutes as half-time substitute Michael MOORE latched on to a Winter through ball to power home the equaliser.
And the Blues wrapped up a deserved win in 74 minutes when Steve STIRLING, who'd been thwarted a few minutes earlier by Clark, drifted through the home defence to slot under Clark for the winner.
Elgin City – Clark, Niven, MacPhee, McMullan (Millar 68), Duff, Cooper, Gunn, Cameron (Leslie 58), Crooks (Wilson 78), Nicolson, Moore. Subs not used – Calder, Beveridge.
Stranraer – Mitchell, Taggart (Kane 90), McGregor, McKeown, Belkouche, Winter, Stirling, Aitken, Borris (Shepherd 81), Malcolm, Grehan (Moore 45). Subs not used – Marshall, McColm.
Ref – G Aitken.
Att – 685.
(Report by Louise Shaw)