Queen of the South 2-0 Hibernian
Second Division Queen of the South took the scalp of Scottish Premier League Hibernian in the Scottish Communities League Cup at Palmerston Park.
Nicky Clark broke the deadlock when he tapped the ball in at the front post from only four yards out.
Gavin Reilly doubled Queens' lead later in the first half through a diving header from Danny Carmichael's cross.
The more illustrious visitors struggled, with Leigh Griffiths guilty of wasting what chances they had.
Hibs manager Pat Fenlon had gambled by resting several players, including club captain James McPake, for their first cup appearance since defeat to arch-rivals Hearts in the Scottish Cup final in May.
However, despite Griffiths hitting the bar with an early chance, it was Allan Johnston's in-form Queens who took control of the match.
And Clark, son of Queens assistant manager, former Hearts striker, Sandy Clark, broke the deadlock when he beat Sean O'Hanlon to connect with Carmichael's low cross.
Hibernian debutant Shefki Kuqi was presented with a chance to level but shot straight at keeper Lee Robinson, with Griffiths blazing wide with another chance.
The hosts then exposed Hibs down their left side again with right-back Chris Mitchell playing the ball inside Pa Kujabi to Carmichael.
The winger crossed and Reilly's diving header flew into the corner of the net from six yards.
Queens continued to dominate into the second half, with both Reilly and Clark going close.
Eoin Doyle came on for the largely ineffectual Kuqi, and the Irishman created two openings for Paul Cairney, but the midfielder could not capitalise.
David Wotherspoon forced a header goalward in injury time, but Robinson saved as the Donhamers progressed to the third round.
Queen of the South manager Allan Johnston: "The first half, I thought we played some really good football. Maybe the second half, we never passed it as well, but I thought we were the better team, to be honest.
"We said to the boys before the game, you are playing against SPL players and it's up to you to raise your standards and see if you are good enough to play there.
"We'll get a lot of press and it's good for their careers."
Hibernian manager Pat Fenlon: "I'm disgusted by that performance.
"We have let ourselves down and let down a fair few supporters who have travelled a long way.
"We just didn't treat it properly, we didn't get to the tempo we should have.
"They worked harder and I thought they were very good, they passed it when they had to and turned us round when they had to and just were better than us all round.
"It's about attitude and application when you come to places like this. If you don't apply yourselves properly, you will get turned over."