After battling back from a 21-10 fourth quarter deficit, Duke fell to Navy 28-21 as the Midshipmen scored a touchdown with 1:18 remaining in the game.
Duke's downfall was their inability to stop big plays on the ground by the Navy offense.
The Midshipmen gashed Duke for 326 yards rushing, averaging nearly 10 yards per carry.
Most of the damage came on crippling huge gains.
Navy quarterback Lamar Owens played an outstanding overall game with 106 rushing yards, 52 of which came on Navy's final possession to set up the game winning score.
Navy fullback Matt Hall put Navy up 21-10 with a 47-yard burst right through the middle late in the third quarter.
Behind Zack Asack, the Devils rallied to tie the game with 3:20 remaining. Asack scored on third-and-goal from the six yard line by scrambling around the right side and into the corner of the end zone.
His two-point pass was complete to Eron Riley on a quick fade, jump ball into the back right of the end zone.
The Midshipmen took the lead right back when Owens capped a five play scoring drive with the game's final touchdown.
Duke lost despite controlling possession for nearly 40 minutes and converting 12 of 20 third downs on offense.