Donegal made Derry fight all the way for their place in the Ulster hurling semi-final - 3-17 to 5-7 at Celtic Park.
The hosts led by 1-11 to 2-4 at the break, with Kevin Campbell netting both the Donegal first-half majors.
Kevin Hinphey, Alan Grant - 17 seconds into the second half - and Brendan Douban notched the goals for the winners, who will host Down next Sunday for a place in the final on July 12th against Antrim.
Derry - B Robinson; M Warnock (0-1), C Quinn, S McCullagh; A Rafferty, L Hinphey, R McCloskey; K Hinphey (1-4), B Quigley; S McGuigan (0-1), R Convery (0-2), P Henry (0-3); J O'Dwyer (0-1), A Grant (1-1), A Kelly (0-1). Subs: T McCloskey for B Quigley, D Foley (0-2) for P Henry, B Douban (1-0) for A Kelly, E McGuckin (0-1) for R McCloskey, M Conway for K Hinphey.
Donegal - P Burns; M McGrath, B Tourish, J O'Loughlin; P Doherty, J Boyle, N Cleary; D Cullen, S Curran; S Gillespie, S McVeigh (0-2), E McDermott (0-1); K Campbell (2-2), R McDermott (3-2), B Lafferty. Subs: D McLoughlin for N Cleary, D McLoughlin for S Curran.
Referee - J Clarke.