Early play fell to the visitors when Steven Payne shot but Ferguson in the Falkirk goal was alert to the danger. The home side responded very well soon afterwards when Ryan McStay ran at the defence and threaded a ball to Duffy but the resulting shot was weak.
The deadlock was broken in the 17th minute, a cross ball from Craig McPherson found Daniel McBreen and when the ball broke to Andrew Lawrie at the back post he was able to convert from close in.
Queens keeper Richard Barnard was called into action twice before the half time whistle when he beat off shots from McBreen and Scally.
At half time the visitors freshened things up and it seemed to pay dividends. Steve Payne again went close with a 28-yard shot which was tipped over by Ferguson and so it came as no surprise when in the 79th minute a free-kick on the far side from Payne was turned into the Falkirk goal by Falkirk defender Alan Kernaghan.
Two minutes before the end the visitors went ahead. A mistake by the Falkirk defence was punished when indecisiveness allowed David McNiven to pounce.