Falkirk 3 - 2 Rangers
Holders Rangers were dumped out of the Scottish Communities League Cup by a youthful Falkirk side.
Farid El Alagui, who had an effort cleared off the line in the first half, twice headed past Neil Alexander to give the Bairns a two-goal lead.
However, headers by Dorin Goian and Nikica Jelavic levelled matters.
But, in injury time, Mark Millar's free-kick evaded Alexander and found its way over the line to give Falkirk a famous victory.
A perfectly observed minute's silence was held ahead of kick-off to mark the passing of Derek Grierson at the age of 79, who served both Rangers and Falkirk in the past.
First Division Falkirk fielded four teenagers in their starting XI and had to deal with some early pressure from the visitors.
Rangers midfielder Lee McCulloch skidded a shot towards goal but keeper Micheal McGovern was up to the task while Gregg Wylde's shot from distance flew over the bar.
The Scottish Premier League leaders almost had the breakthrough after 25 minutes when Alejandro Bedoya hit a left-foot-strike but McGovern dived to his right to make a wonderful save.
Falkirk grew into the game, adopting a 4-5-1 formation so favoured by former Rangers manager Walter Smith on his European travels.
El Alagui directed a shot on target which Wylde was on hand to clear off the line and David Weatherson lifted a shot onto the top of the Rangers net near the end of the first half.
After the restart Rangers came quickly out of the traps and Wylde created some space to fizz a ball along the 18-yard line for team-mate Kyle Lafferty to dink just over the bar.
At the other end, Alexander had to pull off a terrific save to block a deflected Millar shot.
But the Bairns were soon ahead as Kieran Duffie's inviting cross was nodded past Alexander by top scorer El Alagui.
Rangers picked up the pace considerably after losing the opening goal with manager Ally McCoist substituting Bedoya with Steven Naismith.
And Naismith soon made an impact, blasting a shot off the upright.
Carlos Bocanegra also shaved the post with a header from the edge of the box having met an outswinging corner by Steven Davis.
But, after weathering the storm, Falkirk mounted a counter-thrust and Craig Sibbald centred for El Alagui to bullet another header into the net.
Rangers poured players forward and eventually registered when Steven Whittaker's cross was converted by the head of Goian.
And more intense pressure produced the leveller, Wylde providing the assist for Jelavic to score with his head. However, Falkirk felt a free-kick had been due to them in the run-up to the goal.
As extra time beckoned, the hosts won a free-kick and Millar's effort seemed to catch Alexander out as the keeper's attempted save carried the ball onto the crossbar and into the net.
And the Bairns survived one final push from Rangers to book a place in the quarter-finals.
Falkirk manager Steven Pressley:
"I can't praise my players enough. I'm so proud of them.
"Their application, their desire, their willingness to do the things that we continuously talk about, their belief and composure under pressure was remarkable for such a young side.
"It was a truly remarkable win, one that everybody should be proud of. Our supporters have got to bask in this, it's a wonderful result for the football club.
"Financially, it's another big result for us.
"For Rangers to come back and level the game, you'd normally expect the more experienced team and stronger team (to win).
"But the young players showed remarkable mentality. It's testament to our academy system. They played like men."
Rangers manager Ally McCoist:
"When you don't turn up till you're a goal down, sometimes you get what you deserve. Effectively, that's what we did. That's not good enough.
"There was just not enough of the boys playing at the right tempo. It was a really, really poor first-half performance.
"I'm just very, very disappointed and angry that we didn't start the game as we finished it.
"There's no shirking any issues. We put out a team that should've been good enough to win the game and they didn't. So, for that, we deserve criticism.
"It's a massive blow. We just have to see how we react to it.
"We knew Falkirk would give us a game. They fought like a good team, they fought for it. It's to Falkirk's credit that they're through."
Live Text Commentary
Full Time The final whistle is blown by the referee.90:00 +2:57 Goal scored
Goal! - Mark Millar - Falkirk 3 - 2 Rangers Free kick scored by Mark Millar from 18 yards. Falkirk 3-2 Rangers.90:00 +1:51
Free kick awarded for an unfair challenge on Craig Sibbald by Steven Naismith.90:00 +1:19
Craig Sibbald takes a shot. Save made by Neil Alexander.90:00 +0:09
Free kick awarded for a foul by Craig Sibbald on Lee McCulloch. Direct free kick taken by Steven Davis.89:57
Kieran Duffie takes a shot.87:49
Outswinging corner taken left-footed by Gregg Wylde from the left by-line to the near post, Nikica Jelavic produces a right-footed shot from inside the area that clears the crossbar.86:02
Gregg Wylde provided the assist for the goal.86:02 Goal scored
Goal! - Nikica Jelavic - Falkirk 2 - 2 Rangers Nikica Jelavic fires in a goal from inside the six-yard box to the top right corner of the goal. Falkirk 2-2 Rangers.83:59
Effort from the edge of the area by Steven Whittaker goes wide of the left-hand post.82:36
The assist for the goal came from Steven Whittaker.82:36 Goal scored
Goal! - Dorin Goian - Falkirk 2 - 1 Rangers Dorin Goian finds the back of the net with a goal from close in to the bottom right corner of the goal. Falkirk 2-1 Rangers.81:17
Steven Davis restarts play with the free kick. Centre by Steven Whittaker,81:17 Booking
Booking Mark Millar receives a caution for unsporting behaviour.81:08
Free kick awarded for a foul by Mark Millar on Steven Naismith.79:59
Steven Davis sends in a cross, Murray Wallace manages to make a clearance.78:47 Substitution
Substitution David Weatherston leaves the field to be replaced by Blair Alston.77:23
Mark Millar takes a outswinging corner from the right by-line played to the near post, clearance made by Carlos Bocanegra.76:08
Outswinging corner taken by Steven Davis from the right by-line.75:17 Booking
Booking Rhys Bennett receives a yellow card.
Free kick awarded for a foul by Rhys Bennett on Nikica Jelavic. Steven Davis restarts play with the free kick.74:14
The official flags Farid El Alagui offside. Neil Alexander restarts play with the free kick.72:41
Assist on the goal came from Craig Sibbald.72:41 Goal scored
Goal! - Farid El Alagui - Falkirk 2 - 0 Rangers Farid El Alagui finds the net with a headed goal from inside the six-yard box. Falkirk 2-0 Rangers.71:13
Effort from the edge of the box by Lee McCulloch goes wide of the left-hand upright.69:37
Mark Millar takes the indirect free kick.69:37 Booking
Booking Lee McCulloch goes into the referee's book for unsporting behaviour.69:27
Unfair challenge on Farid El Alagui by Lee McCulloch results in a free kick.67:59
Kieran Duffie produces a cross. Kieran Duffie challenges Lee McCulloch unfairly and gives away a free kick. Sasa Papac takes the free kick. Corner from the right by-line taken by Steven Davis, Michael McGovern makes a save.67:16
Mark Millar crosses the ball, save by Neil Alexander.66:03
Gregg Wylde takes a shot. Save made by Michael McGovern.65:00
Sasa Papac restarts play with the free kick.65:00 Booking
Booking Farid El Alagui is shown a yellow card for unsporting behaviour.64:54
Free kick awarded for an unfair challenge on Sasa Papac by Farid El Alagui.63:46
Corner from the right by-line taken by Steven Davis, Lee McCulloch takes a shot. Save made by Michael McGovern. Corner taken by Gregg Wylde, Murray Wallace manages to make a clearance.61:51
Steven Davis takes a outswinging corner from the right by-line played to the near post, Carlos Bocanegra produces a header from the edge of the box and misses to the left of the target.61:25
Shot by Steven Naismith from inside the box hits the post.59:38
Outswinging corner taken from the right by-line by Steven Davis, Michael McGovern makes a save.58:51 Substitution
Substitution Steven Naismith joins the action as a substitute, replacing Alejandro Bedoya.57:16
Kieran Duffie provided the assist for the goal.57:16 Goal scored
Goal! - Farid El Alagui - Falkirk 1 - 0 Rangers Farid El Alagui finds the net with a headed goal from inside the six-yard box. Falkirk 1-0 Rangers.56:53
Kieran Duffie takes a shot. Clearance by Dorin Goian.54:19 Substitution
Substitution Nikica Jelavic comes on in place of David Healy.53:12
Murray Wallace takes the direct free kick.53:12 Booking
Booking Steven Davis is cautioned.53:07
Craig Sibbald fouled by Steven Davis, the ref awards a free kick.51:04
Foul by Kyle Lafferty on Murray Wallace, free kick awarded. Mark Millar restarts play with the free kick.50:31
Mark Millar takes a shot. Outswinging corner taken right-footed by Mark Millar from the right by-line, Dorin Goian manages to make a clearance.49:21
Corner taken by Gregg Wylde.48:35
Lee McCulloch fouled by Farid El Alagui, the ref awards a free kick. Sasa Papac takes the free kick.47:55
Kyle Lafferty has an effort at goal from just outside the box which goes wide of the right-hand upright.47:36
Gregg Wylde crosses the ball, clearance by Murray Wallace.45:46
Foul by Kieran Duffie on Gregg Wylde, free kick awarded. Sasa Papac restarts play with the free kick, Lee McCulloch crosses the ball.45:01
The match restarts for the second half.45:00 +0:38 Half time
Half Time The referee calls an end to the first half.44:50
Outswinging corner taken left-footed by Gregg Wylde.44:34
The referee blows for offside against Farid El Alagui. Indirect free kick taken by Neil Alexander.43:30
Outswinging corner taken from the right by-line by David Healy.42:17
Gregg Wylde takes a shot.41:19
Effort on goal by David Weatherston from outside the penalty box goes harmlessly over the bar.40:18
Free kick awarded for a foul by Farid El Alagui on Steven Whittaker. Dorin Goian restarts play with the free kick.39:58
The official flags Kyle Lafferty offside. Michael McGovern has a direct shot on goal from the free kick.35:14
Farid El Alagui takes a shot. Gregg Wylde makes a clearance.34:18
Corner taken by Mark Millar, clearance by Gregg Wylde.33:12
Kieran Duffie fouled by Sasa Papac, the ref awards a free kick. Michael McGovern takes the indirect free kick.26:38
Unfair challenge on Farid El Alagui by Dorin Goian results in a free kick. The free kick is delivered right-footed by Mark Millar from left channel, Carlos Bocanegra makes a clearance.26:29
Alejandro Bedoya produces a cross, Darren Dods manages to make a clearance.24:26
The ball is crossed by Carlos Bocanegra.23:30
Shot by Alejandro Bedoya. Save by Michael McGovern.21:15
Corner taken by Mark Millar from the right by-line, Sasa Papac manages to make a clearance.16:07
David Weatherston produces a cross.15:20
Kyle Lafferty takes a shot. Save made by Michael McGovern.10:49
David Healy takes a shot. Save by Michael McGovern.9:23
Thomas Scobbie sends in a cross, clearance by Alejandro Bedoya.6:40
Farid El Alagui is caught offside. Neil Alexander takes the direct free kick.4:42
Effort on goal by Gregg Wylde from outside the area goes harmlessly over the bar.2:03
Lee McCulloch takes a shot. Save by Michael McGovern.0:00
The match gets underway.
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