Resurgent Stirling notched up their second win in the space of five days to close the gap on second-bottom Alloa to a single point ahead of their crunch meeting at Recreation Park on Saturday.
Having deservedly seen off Morton at Cappielow in midweek, the Binos were again well worth the three points against a Raith outfit making their first league visit to Forthbank since December 1997.
The only goal came a minute before half-time when Dougie Wilson took a corner short to fellow winger David O'Brien, and his perfect cross was met by the on-rushing Paul Nugent, who headed the ball firmly past on-loan keeper Ally Brown.
Stirling ought to have scored more goals as they gained revenge for a 5-2 defeat at Kirkcaldy in September, with Steven Bell being denied by a goal-line clearance from Todd Lumsden just after half-time.
Ross Forsyth and Stewart Devine came close from distance, while Brown was lucky to escape in the first half when he spilled a Devine free-kick before smothering the ball on the line.
Raith struggled to get going but they had their moments and Paul McManus sent a header from a Brian Fairbairn cross wide of target when he was unmarked just before Stirling scored.
With 12 minutes left, McManus picked out Eddie Annand, whose header dropped just over the bar, but an equaliser would have been harsh on the Binos, who notched up their first home league win since April.