Raith booked their place in the last 16 of the William Hill Scottish Cup with goals either side of half-time from Barrie McKay, on loan from Rangers, and Grant Anderson.
Stirling contributed hugely to an entertaining cup tie at Forthbank, with our best performance of the season, but we paid the price for missing a number of good chances and Rovers progressed to round five.
Stuart McLaren made two changes to the team that lost 4-0 at Dunfermline, with Lee Hamilton and Angus Beith, our new loan signing from Hearts, replacing Dale Fulton and the suspended Willie Robertson. Darren Lee Smith and Lewis Coult missed out through injury and Graham Weir was also sidelined due to a virus.
This was the third meeting between the teams in the Scottish Cup and we almost made a dream start inside two minutes when Beith delivered a great cross from the left and Gordon Smith headed just wide at the far post.
Steven Doris volleyed over and David McGurn made superb saves to deny both Phil Johnston and Sandy Cunningham as we continued to look a threat while at the other end Callum Reidford kept out efforts from McKay and Mark Stewart in an open game.
We might well have been ahead but instead fell behind 60 seconds before half-time when the impressive McKay capitalised on the break of the ball and fired a low shot into the corner from the edge of the box.
Gordon Smith, who has scored seven goals since his summer move from Raith, was denied an equaliser when Jason Thomson made a terrific block.
Rovers claimed their second goal in 54 minutes when Anderson smashed home a first-time effort from 20 yards following a corner, giving Reidford no chance.
Albion continued to create chances and Cunningham was thwarted by McGurn when clean through before Smith pulled a shot wide after good work by Steven Doris then blazed over when he looked certain to score.
Christian Nade had a third goal ruled out for Raith after a foul on Reidford but even a two-goal margin of defeat was harsh on the Binos.
Stirling Albion: Reidford, Hamilton, Forsyth (Creaney 82), McClune (Fulton 57), McGeachie, C Smith, Johnston, Beith, Doris, G Smith, Cunningham (Comrie 67).
Subs (not used): Munn, D Smith, Wedderburn, Paterson (GK).
Raith Rovers: McGurn, Thomson, Perry, Watson, Anderson (Conroy 79), Moon, Stewart, Scott (Callachan 90), McKay, McKeown, Nade.
Subs (not used): Hill, Elliot, Vaughan, Matthews, Laidlaw (GK).
Scorers: McKay 44, Anderson 54
Referee: Greg Aitken