Montrose came behind to move to within a point of the play-offs as we slipped to second from bottom of the Ladbrokes League 2 table.
Blair Henderson gave us an early lead with a penalty but Chris Templeman equalised and Graham Webster grabbed a late winner from the spot.
It took Montrose’s good run to just one defeat in eight games and leaves us mired in a battle to avoid finishing bottom of the table.
After a 4-1 loss at Annan and a Scottish Cup exit at Clyde on Tuesday this was another big blow in a miserable week, made worse by what looks like a serious knee injury to Willie Robertson following a bad tackle from Terry Masson and a late red card for fellow midfielder Calvin Colquhoun.
With Ross McGeachie, Ross Kavanagh, Josh Jeffries, Callumn Morrison and Jack McCue all ruled out through injury, Binos boss Dave Mackay made one change to the team beaten at Broadwood – with Sean Dickson replacing Andy Black – while the Gable Endies were without suspended top scorer Gary Fraser.
On a pitch made heavy after overnight rain, we went ahead in 15 minutes when Henderson claimed his 11th goal of the season and his third penalty in two games after Robertson had been tripped by Kieran McWalter just inside the box.
Chris Smith made a good save from Webster just before the break then Henderson headed wide early in the second half but the game entered the last 20 minutes with Stirling still leading 1-0.
The equaliser came when Templeman was able to make space in the box and turn a defender to crack a low shot past Smith, and there was worse to follow as Stewart Petrie’s side scored again.
Full-back Ross Ballantyne made a good run into the box and was upended by Ross McMillan, allowing Webster to slam the penalty into the corner with nine minutes left.
Sub Ross Cameron missed a good chance to equalise when he fired over with four minutes left then Colquhoun, already on a yellow card, saw red in stoppage time for what must have been an off-the-ball incident.
Stirling Albion: C Smith, Caddis, Quigley, Wright, McMillan, Colquhoun, Robertson (Petrie 39), McLaren, Dickson, Henderson, D Smith (Cameron 79).
Subs (not used): R Smith, Black, Forsyth, Mills, Binnie (GK).
Goal: Henderson pen 16
Montrose: Millar, Ballantyne, Steeves, McWalter (Smith 57), Pascazio, MacDonald, Webster, Masson, Callaghan (Hay 65), Templeman (Thomas 82), Ferguson.
Subs (not used): Anderson, R Campbell, Allan, Fleming (GK).
Goals: Templeman 73, Webster pen 81
Referee: Steven Kirkland