Inverness Thistle were worthy winners, but Alloa made them fight very hard for the victory.
The Jags had the better openings in the early stages and Alloa goalkeeper Mark Cairns made fine saves from David Xausa and Paul Sheerin within the first 15 minutes.
The home side's efforts were rewarded when Mike Teasdale put them ahead with a thundering 25 yard drive on 32 minutes.
Alloa were quick to react and an in-swinging corner from Willy Irvine rebounded from the upright.
The visitors made a bright start to the second half and Grant Johnston equalised from Richard Huxford's cross on the hour.
Sheerin snatched a winner with a spectacular 35 yard drive on 79 minutes.