Rangers 2 Celtic 1Substitute Shota Arveladze was Rangers' extra-time hero as Alex McLeish's side finally ended Celtic's Old Firm domination.
The Georgian's goal gave Rangers a 2-1 victory in this epic Scottish League Cup quarter-final, with fellow replacement Dado Prso having cancelled out John Hartson's opener just before the regulation 90 minutes expired.
It ended seven straight derby day defeats as Rangers celebrated their first victory over their rivals since March 2003.
Rangers dominated the opening 45 minutes, forcing corner after corner as Celtic opted to soak up as much pressure as possible to conserve already stretched resources for the full duration.
The home side were dealt an early blow when Steven Thompson took an early knock which was eventually to force him off before the game was half an hour old.
Nacho Novo almost opened the scoring in the fifth minute while Thompson was receiving treatment, with Joos Valgaeren having surrendered possession to Hamed Namouchi.
He immediately sent Novo away on a race for goal and the Spaniard, having cut inside Stanislav Varga, saw his fierce drive beaten away expertly by Celtic's teenage goalkeeper David Marshall.
The next clear-cut chance was Celtic's, however, when Rangers failed to deal with a free-kick conceded by Marvin Andrews on Juninho in the 21st minute.
Hartson was on the end of Alan Thompson's delivery into the box and was dismayed to see his header from six yards bounce up off the turf and over Stefan Klos' bar.
Prso, his head swathed in the white bandage which protected his cut forehead, replaced the stricken Thompson, who had just headed over, in the 27th minute.
Juninho escaped a booking for chopping Peter Lovenkrands down from behind and referee Stuart Dougal also angered the home fans for failing to award a penalty when Novo tumbled over as if Jackie McNamara had clipped his heels.
Varga was booked, however, in the 45th minute, for barging Prso over.
Celtic had been dormant for most of the game but came alive to take the lead in the 67th minute. Varga was the man who almost made the breakthrough, poking the ball past Klos and off the crossbar, but the reprieve was short-lived to say the least.
Klos had been a spectator for most of the evening but had been slower to react than Varga, flapped to concede a corner straight after and was beaten at the back post by Hartson's header.
Just five minutes were left on the clock when Prso slotted home the equaliser, locating an empty net after Marshall could only parry a fierce low drive from Namouchi.
Vignal was booked for chopping substitute Craig Beattie down but when Arveladze fouled him next Rangers repelled the free-kick and promptly went upfield and scored.
Ricksen played a one-two with Namouchi and after the Dutchman had raced some 60 yards upfield he played Arveladze in.
The Georgian still had much to do but buried a low drive from the edge of the area past Marshall.
RANGERS: Klos, Khizanishvili, Andrews, Boumsong, Vignal, Namouchi, Ricksen, Alex Rae (Hughes 111), Lovenkrands (Arveladze 79), Novo, Thompson (Prso 27). Subs Not Used: Graeme Smith, Hutton. Booked: Prso, Vignal. Goals: Prso 85, Arveladze 100.
CELTIC: Marshall, McNamara, Balde, Varga, Valgaeren, Agathe, Lennon, Petrov (Beattie 90), Thompson, Juninho Paulista (Camara 67), Hartson, Beattie (McGeady 105). Subs Not Used: Hedman, Pearson. Booked: Varga, Balde, Hartson. Goals: Hartson 66.
Referee: S Dougal (Scotland).