And it was a derby match with added bite as Gretna boss Rowan Alexander returned to Palmerston Park seven years after his exit as manager.
It was a dull match although it started off at a tremendous pace in front of the Dumfries side's biggest crowd of the season.
Both sides had early chances but were unable to cash in on them.
Queens suffered a blow after only 15 minutes when striker Graham Weir collided with colleague Sean O'Connor and had to be taken off with a fractured cheekbone.
But Queens immediately went close to scoring with Jim Lauchlan heading just wide of the post.
Colin McMenamin had a great chance to put his side ahead when John O'Neil swung in a cross but the striker put in a weak header which was easily saved by the keeper.
He was quick to make amends however six minutes before the break when he rounded a defender and left keeper Colin Scott helpless.
And Gretna went further ahead just before the interval when Danny Grainger cracked in a 20-yard free-kick.
Gretna showed more purpose after the interval and keeper Scott was kept busy holding off their forwards.
There was a further setback for Queens in the 55th minute when their other first-choice striker O'Connor had to be carried off on a stretcher with a suspected broken ankle.
From then on it was all Gretna with keeper Scott performing heroics until two minutes from time when he could only parry a shot from Allan Jenkins and McMenamin nipped in to head home.
Victory was sweet for Alexander who said after the match: "I spent three successful years at Palmerston but it was good to come back after a seven-year gap and take all three points."
Queen of the South manager Ian McCall praised his players for their first-half performance and said they just seemed to run out of steam.
He added that he would never use his side's part-time status as an excuse but felt that seven games in four weeks was just too much for his players.
Duke's verdict-Queens never scaled the heights of the midweek epic with Killie and subsequently were picked off at ease by a more than useful Gretna side. The Doonhamers never recovered from the first half injury to Weir and with O'Connor also crocked in the second half there was no way back for the home side.
Duke's man of the match for Queens - Eric Paton in my opinion was the best player on the park.