Caley Thistle fell to a 2-1 defeat at Palmerston Park after first-half goals from Josh Todd and Euan East secured all three points for the home side.
Logan Chalmers had equalised for the Caley Jags with a stunning strike and his fifth goal in five matches.
The result keeps Queens in with a chance of staying up as they are still required to win their remaining two matches to have a chance of avoiding the drop to League One.
Billy Dodds made three changes to the side which beat Kilmarnock 2-1 on Friday night as David Carson, Aaron Doran and Joe Hardy came into the side for Kirk Broadfoot, Austin Samuels and Billy Mckay.
The home side started brightly, Innes Cameron saw his effort in the opening minute fired over the bar.
Queens then took the lead through Josh Todd after 5 minutes played. The midfielder played a one-two with Ruben Soares Junior and fires low shot past Ridgers to open the scoring.
Caley Thistle responded well to going behind. With 11 minutes on the clock, Joe Hardy picked out Aaron Doran through on goal but the Irishman’s effort from inside the box was blocked and turned behind for a corner.
Caley Thistle did get level fives minutes later. Logan Chalmers produced a fine bit of skill to beat two players on the left side and he then fired a effort from the edge of the box past Josh Rae into the top corner after 16 minutes.
Queen then had the lead again before the break. A free-kick was whipped into the box by Queens and then fell to Euan East in the box who produced a fine finish past Mark Ridgers to give the hosts the lead after 40 minutes.
Caley Thistle looked for an equaliser before the break. Captain Sean Welsh saw his effort from the edge of the box saved by Rae while Logan Chalmers saw his volley go behind following a cross from Welsh.
In the second-half, chances proved to be at a premium.
Caley Thistle really pushed for an equaliser in the final ten minutes on the clock. Cameron Harper saw his free-kick from the edge of the box go over the bar and behind.
Logan Chalmers then met Tom Walsh’s cross in the box and his swerving volley was narrowly wide of the post.
There was also chances for Wallace Duffy and Billy Mckay late on but both efforts were held by Josh Rae.
Queens had their chances to seal it. Danny Devine was on hand to clear Junior’s effort off the line. In the process Devine collided with the post and had to be taken off for treatment for the closing stages of the game.
Caley Thistle will now face Morton this Saturday as they look to seal 3rd place in the Championship