Derry City 1 Waterford United 2
Waterford reached their first cup final in 18 years as Derry failed to live up to their favourites tag.
Blues had the ideal start with the lead goal on eight minutes.
A mistake by Derry keeper David Forde resulted in Daryl Murphy gaining possession to beat Forde at the second attempt.
Derry hit back to level within four minutes when Davy Byrne beat Dan Connor with a stinging shot.
But it began to go horribly wrong for Derry in the last five minutes of the first half.
Paddy McLaughlin handled and Blues’ keeper Connor restored their lead from the penalty spot.
Derry winger Gareth McGlynn was then sent off for a bad tackle with Mark Clifford.