Douglas went down 18-10 on their trip to Orrell Anvils.
The Manx side trailed 10-7 at half-time after skipper Bryn Snellgrove picked up a try and a conversion to pull them back into the game after they had conceded 10 early points.
A Snellgrove drop goal early in the second half levelled the scores but Orrell stole the game with a try and a penalty in the closing stages.
FC Isle of Man to host in-form Atherton LR
Visitors currently on eight-match winning streak
Hockey: Cup semi-finals await this weekend
Places in April finals up for grabs in last-four phase
Rugby: Douglas' play-off quest to continue against Firwood Waterloo
Vagabonds Ladies to welcome Bury to Ballafletcher
Football: FA Cup & Woods Cup continue on busy weekend schedule
Northern showdown in top flight among league clashes
