Down 2-17 Derry 1-15
Down showed great determination, having had wing-forward Simon Wilson sent off late in the first half, to battle their way past Derry at Casement Park.
Wilson was dismissed for his second yellow card offence. An early James Coyle goal laid the platform for Down's 1-10 to 0-08 half-time lead.
Gareth Johnson and Derry's Ruairi Convery swapped second half goals.
Although the Oak Leafers twice cut the gap to two points, six-point hero Paul Braniff steered Down through to their fifth Ulster final in six years.
Jim McKernan's Down charges had already secured a place in the Christy Ring Cup final and were keen to keep the momentum going.
Simon Wilson made a major impact before his dismissal with four important points – all from frees.
Coyle bagged Down's opening goal after just ten minutes and this provided the inspiration for four of Down's starting forwards to get on the scoresheet.
The Mourne men also had to overcome the loss of Gabriel Clarke to a compound fracture injury, with the talented defender replaced after 20 minutes.
If Down held the upperhand in the opening 35 minutes, the tide turned in the second half and Derry came more and more into it.
Both sides were evenly matched on the restart as Derry attempted to utilise their extra man in defence, but Down continued to clinically take their scores.
Gareth 'Magic' Johnson slipped home Down's second goal just after the restart, the full-forward doing well from close ranfe.
Convery rallied his side, netting after a pacy attack, but Down always held that extra edge.
Paul Braniff finished as Down's top scorer, showing his scoring class from open play and frees.
Oising McCloskey, Convery and Derry's top scorer Sam Dodds kept their side in touch, but Down had just enough to hold on and set up an Ulster final clash with Antrim.
DOWN: Graham Clarke; Fintan Conway, Stephen Murray, Sean Ennis; Gabriel Clarke, Rory McGrattan, Michael Ennis; Conor Woods (0-04), Andy Savage; Simon Wilson (0-04, 0-04f), Paul Braniff (0-06, 0-03f), Kieran Courtney; James Coyle (1-01), Gareth Johnson (1-00), Eoin Clarke.
Subs used: Conor O'Prey for Gabriel Clarke (20 mins), Martin Coulter (0-01) for Eoin Clarke (47), Kevin McGarry (0-01) for Coyle (50), Emmet Trainor for Courtney (58).
DERRY: Darryl McDermott; Ruari McCloskey, Sean McCullough, Sean McNicholl; Peter O'Kane, Stephen Henry, Mark Craig; Kevin Hinphey (0-01), Oisin McCloskey (0-02); Ben Dodds (0-01), Donal Leahy (0-01), Sam Dodds (0-06, 0-04f); Eugene McGuckin, Paddy McCloskey, Ruari Convery (1-02).
Subs used: Colm Murphy for McGuckin (35 mins), Conor Quinn (0-02) for Leahy (half-time), Michael Kirkpatrick for McCloskey (65).
Referee: Eamon Morris (Dublin)