Old Boys remain top of the Canada Life Premier League but their title hopes suffered a potentially big blow on Saturday.
The league leaders went down 3-1 at Peel, while Laxey defeated 2010 champions Rushen 4-2 to move level with them on goal difference.
Elsewhere, reigning champions St George’s overcame a tricky test in style with a 5-1 win at St John’s to move to within two points of the leaders with games in hand.
Out west, Daniel Bell, Rob Cottier and Andy Quirk were on target as Peel leapfrogged from eighth to fifth to defeat the leaders, who replied through Andy Ward.
Laxey took full advantage with the Miners seeing off Rushen.
Darren Hudgeon, Josh Thomas, Ashley Webster and Danny Foulis scored their goals with Rushen finding the net through Steven Riding and Josh Kelly.
The match was overshadowed by a serious injury to Laxey midfielder Jim Travers who sustained a suspected broken leg.
Ciaran McNulty was the star as St George’s maintained the top flight’s only unbeaten record.
He hit a hat-trick with Frank Jones grabbing a double in a 5-1 triumph, all this after a goalless first half.
Mike Peace scored the home side’s consolation.
There was a goalfest at the Bowl as St Mary’s stayed fourth with an 8-5 win over Ramsey.
The league’s top marksmen Steven Priestnal hit four.
Chris Anderson added two and Brian Crellin and Craig Murphy were also on the scoresheet for the Saints.
Gymns are out of the drop zone for the first time this season after winning the basement battle 3-2 at home to Ayre.
They’ve now been replaced in the drop zone by Ramsey Youth Centre who went down 4-1 at home to Castletown.
Mark Wolfenden (two), Brett Alcotte and Jack Charmer were the Town marksmen with Matthew Boyde scoring for battling Youth Centre.