Derry City lost for just the second time under the reign of Ruaidhri Higgins on Friday night.
The Candystrips went down 2-1 to Dundalk at Oriel Park in the Premier Division.
Daniel Kelly had the home side 1-0 up in the 37th minute and then Patrick Hoban made it 2-0 from the penalty spot just before the hour mark.
Eoin Toal who was an injury doubt for the game pulled one back just three minutes after Dundalk got their second.
The results moves Dundalk two points ahead of Derry into sixth place in the standings.
