The gloomy shadow cast by Sunday's dropped points to Dundee United seemed to get even darker when Rangers fell behind to a wonder goal by Craig Brewster, but a grimly determined Ibrox side hit back strongly to record their eighth win in nine matches.
More importantly, a shock home defeat for Celtic against Aberdeen means Rangers are now just four points behind their arch rivals with their supporters sensing a significant change of fortunes in the title race.
Dunfermline boss Davie Hay had promised that his team would attack and they certainly made the early running with Simon Donnelly testing keeper Stefan Klos after only four minutes.
Tom Butler with a volley and Brewster with an angled header both failed to convert definite half chances and it was obvious that the visitors were rattled with Nacho Novo fired a long-range effort embarrassingly high and wide.
In the 10th minute two former Rangers players combined for Dunfermline as Greg Shields stormed forward before Barry Nicholson narrowly missed the target from 18 yards with Klos scrambling across his line.
A looping header from Hamed Namouchi and a first-time drive from Novo briefly threatened a Rangers revival, but the Fifers then stunned them with a goal of supreme quality.
Donnelly's through ball was back-heeled by Nicholson, allowing Brewster to find the top corner of the net with a 22-yard left-foot shot.
Novo's header then caught Derek Stillie seriously out of position but the Dunfermline keeper managed to recover and push the ball away for a corner.
Bob Malcolm also twice tried his luck from long range and a sloppy clearance by Stillie hit Novo and spun away to safety, yet Dunfermline still threatened to add to their lead with Gary Mason and Butler shooting onside and Chris Burke having to make a vital penalty box challenge for Rangers.
The visitors ended the first half marginally on top and looked a different side after the break as they turned the game upside down within five minutes of the re-start.
First Jean-Alain Boumsong equalised with a towering header and then Fernando Ricksen was tripped by Andrius Skerla and Novo - who had struck the post moments earlier - drilled home the penalty.
Dunfermline were never likely to throw in the towel, but the better chances fell to a methodical Rangers team with Dado Prso, Novo and Boumsong all wasting chances to grab a killer third goal.
In a nail-biting final three minutes Prso and home captain Scott Thomson were denied by a Stillie save and a desperate goalline clearance.