Peterhead's relegation to Division Three was confirmed as East Fife secured a win that keeps alive their promotion play-off hopes. David Muir, Steven Hislop and Matthew Park header all went close for the visitors before Craig Johnstone slotted in the open goal after 28 minutes.
David Ross, Paul Tosh and Paul Emslie went close for Peterhead.
But David Muir drilled in East Fife's second on 54 minutes, after which both sides squandered chances.
The victory means the Methil side edge to within three points of Brechin City in the race for the final spot in the promotion play-offs.
Peterhead: Jarvie, Donald, MacDonald, Scott Ross, Stuart Smith, Strachan (Sharp 49), Nicky Clark, Emslie, David Ross (Stephens 64), Bavidge, Tosh (Wyness 73). Subs Not Used: Bateman, McVitie.
Booked: Scott Ross, Nicky Clark.
East Fife: Michael Brown, Durie, Ovenstone, McGowan, Muir, Park, McCulloch, Johnstone (Smart 67), Hislop (Steven Campbell 70), Linn, Wallace. Subs Not Used: Lyness, Fagan, Cargill.
Booked: Steven Campbell.
Goals: Johnstone 28, Muir 54.
Att: 473
Ref: Gary Hilland
Source: BBC Sport
Source: BBC Sport