Donegal's Dr. McKenna Cup campaign came to an end at Brewster Park as they were beaten 0-12 to 0-8 by Pete McGrath's Fermanagh side in front of a crowd of 1,333.
This result puts the Ernesiders into the semi-finals.
There was little between the sides in the first half. Odhran MacNaillais was to the fore for Donegal and scored three points.
When Marty O’Reilly scored a point on 24 minutes, Donegal led by 0-5 to 0-3 but Fermanagh closed out the half on a positive note as they got two more points to leave the sides level.
Donegal boss Rory Gallagher made a number of substitutions in the second half with Martin McElhinney and Ciaran Gillespie coming on at the interval. McElhinney, though, got a black card, and was replaced by Anthony Thompson.
Fermanagh gained control and helped by a couple of points by Pat Cadden they moved into a comfortable four points lead.
In the end Fermanagh were worthy winners.
Donegal will now turn their attention to the preparations for the start of the National Football League Campaign.
Down beat St. Mary's 3-20 to 2-14.