Forfar continued their push towards safety and ended Queen of the South's winning run of five matches with a tight 3-2 victory.
The winner came in the final minute when Dave Beaton cracked home a 30-yard free-kick.
Queens had opened the scoring on 36 minutes when striker Peter Wetherson neatly slipped the ball in to the net from a tight angle.
But Forfar equalised five minutes later when Sean Christie netted after a mix-up in the Queens defence.
Queens regained the lead with 67 minutes gone when John O'Neill scored from the spot after Sunderland had been pulled down in the box.
But Liam Keogh levelled the score with 20 minutes remaining following a corner, and with time running out Beaton snatched the three points.