Linfield's Premiership lead was cut to four points as Shane Jennings' goal helped Coleraine edge out the Blues.
Philip Lowry and Aaron Burns missed Linfield chances while Billy Joe Burns had a strong penalty claim turned down as the Blues dominated early on.
However, Jennings nodded Coleraine ahead on 43 minutes after Alan Blayney had blocked a Stephen Lowry shot.
Linfield produced intense pressure after half-time with Mark McAllister heading over but Coleraine held on.
Portadown's victory at Ballymena means that Linfield now only lead Ronnie McFall's side by four points.
Blues boss David Jeffrey handed Michael Gault the captaincy on his 400th appearance for the club with Robert Garrett named on the bench.
Philip Lowry had an early Linfield half-chance after Gavin Cullen miskicked an attempted clearance on the heavily sanded pitch but the Bannsiders keeper got back to gather.
Cullen saved from Aaron Burns while Billy Joe Burns then had his strong penalty claim turned down after he appeared to be upended by David Ogilby.
Against the run of play, the Bannsiders went ahead on 43 with Jennings nodding home from close range after Blayney had saved Lowry's shot.
The Blues laid siege to the Coleraine goal in the 15 minutes after half-time with Thompson firing over and then seeing a shot bravely blocked by Cullen.
Midway through the second half, McAllister somehow contrived to head over from eight yards when it appeared easier to score.
At that stage, you suspected that it was going to be Coleraine's night and so it proved as they held on despite the four minutes of injury-time.
Indeed, Michael Hegarty almost made it 2-0 in the dying seconds as he was denied by Blayney.
The defeat was Linfield's first reverse at the Showgrounds since the September 2003 clash.