Allan Smart scored a stoppage-time winner to keep City two points behind leaders Cove Rangers and leave us just four in front of bottom club Brechin.
In a contest of few chances, we matched the title chasers for most of the game but were undone when the ball broke to Smith in the box and he drilled a low shot beyond Cammy Binnie.
It was our second 1-0 defeat to James McDonaugh’s men this season and means we have picked up just one point out of nine in December, going into Saturday’s local derby with Stenhousemuir at Ochilview.
Binos boss Kevin Rutkiewicz made four changes to the team that drew 1-1 with Queen’s Park, with James Creaney (suspended), Paul Willis (ill), Blair Currie (injured) and Dylan Bikey replaced by Cammy Thomson, Dom Docherty, Binnie and Josh Peters. Teenage keeper Jay Elliot was on the bench as a trialist. City fielded Joshua Rae as a trialist as goalkeepers Calum Antell and Aidan McAdams were both injured.
Almost nothing of note happened for the best part of half an hour then Blair Henderson should have scored with a header before Dylan Mackin saw his header come back off the post at the other end. Danny Handling wasn’t far away for the visitors as the first half ended goalless.
It was a day when neither keeper had many saves to make and the match looked to be heading for a 0-0 draw, as was the case when the teams met here on the final day of last season.
We got into some decent positions but failed to make the most of them and Edinburgh were the team pressing in the closing stages. We generally defended well but were caught out in the 91st minute when former Peterhead midfielder Smith fired home to earn City their third straight league win.
Stirling Albion: Binnie, McGeachie, Thomson, Nicoll (Banner 82), McLean, McGregor, Jardine, Docherty, Heaver (Bikey 57), Mackin, Peters (Duffy 63). Subs (not used): Elliot, Scott, Wilson, Wright.
Edinburgh City: Rae, Thomson, Balatoni, L Henderson, Crane, Brown, Stewart (Wilson 79), Handling, Smith (Kane 90) Shepherd (Court 73), B Henderson. Subs (not used): Beveridge, Newman, Shaw, Quate.
Scorer: Smith 90
Referee: Lloyd Wilson