Rory McAllister grabbed his 20th goal of the season as Peterhead notched up their fifth straight win and shut-out to climb to second place in the table.
In a tight game of few clear-cut chances, McAllister spun his marker on the edge of the box and drove a low shot past Sam Filler 11 minutes before the interval for his ninth goal in five matches.
The Blue Toon defended stoutly thereafter and Albion rarely looked like equalising as we suffered only our second defeat in 14 games.
Binos boss Greig McDonald made one change from the team that drew 2-2 at Montrose, with Scott Davidson replacing the injured Ross Forsyth, as we sought to extend our unbeaten home run to eight games.
Peterhead had failed to beat Albion in three previous attempts this season – we won 1-0 at Forthbank in December and drew 2-2 and 0-0 at Balmoor – but they dug out a vital victory here.
Graeme Smith made important early saves from Kieran McAnespie’s deflected free-kick and Davidson, following a Mark Ferry cross, as Stirling started well.
Phil Johnston then sprung the offside trap but his shot was narrowly wide and the visitors came more into the game, albeit without really creating much.
McAllister’s clinical strike proved decisive but David Cox and Jamie Redman wasted good opportunities to add a second after the break while Stirling top scorer Jordan White saw a header saved and sub Sandy Cunningham had an effort blocked.
There was little between the teams on a day when a dry, bumpy pitch made good football difficult but McAllister’s goal was the difference and the result sees us slip to eighth place ahead of next week’s trip to Annan.
Stirling Albion: Filler, McCunnie (Day 75), McAnespie, McClune, Thom, Bishop, Weir, Ferry, White, Davidson (Cunningham 60), Johnston (Flood 80).
Subs (not used): Ashe, Crawford (GK).
Peterhead: G Smith, Sharp, Noble, Ross, R Smith, Cowie, Cox (McCann 90), Redman, McAllister (McGlinchey 80), Bavidge (Rodgers 29), Strachan.
Subs (not used): Tully, Jarvie (GK).
Scorer: McAllister 34
Referee: Barry Cook