The Blue Toon held out against a late Fife bombardment to keep their title bid on track.
Peterhead should have been ahead after just six minutes when the Fifers lost the ball cheaply and Dougie Cameron sent Scott Michie racing through. His perfect cross was met by Robert Linn, but Scott Morrison got down to his right to make an outstanding stop.
East Fife went with an attacking three up front but the visitors didn't give them a sniff, and Michie was only denied by a desperate Craig Lumsden tackle.
Linn was then defied by Morrison, again after another slip in the home defence, but it was third time lucky for the striker after 22 minutes. He combined with Scott Michie on the edge of the area before curling a superb shot into the top corner.
Unfortunately he limped off after 37 minutes after a heavy tackle, and the Fifers' Steven Nicholas came close with a drive that was deflected just wide.
Peterhead substitute Martin Bavidge sent a 49th minute shot narrowly past the post, but his team got lucky after 53 minutes when Allan Youngson's left-wing cross sailed over Morrison and into the net.
Kevin Steele shot weakly wide for the Fifers, but Peterhead weren't finsihed and a great running shot from Bavidge was only stopped by the keeper's fingertips.
East Fife rallied, and Greig McDonald had a shot headed off the line by Cameron in the 75th minute. Steven Nicholas then sparked a late surge and he rifled an unstoppable shot past Paul Mathers in the 82nd minute, but it was too little too late.