Palmerston remains a very painful place for Rangers managers. Consider this the first harsh lesson of Stuart McCall’s tenure. Back in the chill of mid-December, Ally McCoist led the Ibrox side here on the day it emerged he had handed in his notice of resignation. A convincing 2-0 defeat did nothing to alleviate the mood of gloomy chaos that had engulfed the club. Nine days later, McCoist was out on gardening leave. Fast forward almost five months, and Rangers arrived here in far more ebullient spirits with a new boardroom regime installed and three successive victories under McCall’s command. That Hibs and Hearts were among the victims added to the sense of a substantial revival. In Dumfries, however, it felt more like a flashback to the bad old days of their campaign. Rangers were simply second-best all over the plastic pitch in Dumfries . Striker Derek Lyle points to the skies after putting Queen of the South in the lead at Palmerston Park . Lewis Kidd celebrates after an own goal doubles Queen of the South's lead at the start of the second half . Gavin Reilly (left) celebrates after forcing an own goal for  QOTS's third to dent Rangers' second place hopes . Queen of the South: Clark, Durnan (Hooper), Dowie, Higgins, Kidd, McShane, Carmichael, McKenna, Holt, Lyle (Pickard), Reilly (Russell) Subs: Paton, Atkinson, Smith, Smith . Booked: Higgins . Scorers: Lyle 33', Wallace (og) 46', Reilly 69' Rangers: Robinson, McGregor, Zaliukas, Mohsni, Wallace, Templeton (Crawford), Law, Murdoch, Vuckic, Miller (Hardie), Clark (Boyd) Subs: Black, Shiels, Simonsen, Sinnamon . Booked: Templeton, Moshni . Ref: Don Robertson . Att: 5,093 . Immense credit must go to Queens, who recorded a thoroughly merited victory that has significantly boosted their play-off hopes. Under James Fowler, they are capable of bright, energetic football that delivered goals from Derek Lyle and Gavin Reilly, as well an own goal from Lee Wallace. McCall, though, must have felt a twinge of despair. He has spent much of his recent time emphasising that nothing had been achieved by the recent uplift. That so much work still had to be done were they to achieve their aim of promotion. A first defeat of his six-game reign confirmed that assessment in the most emphatic fashion. The Ibrox outfit remain third behind Hibs on goal difference, albeit with a game still in hand. Radical improvement is once again required when they host Raith Rovers on Sunday. Queens will face Falkirk at that same time, having just overhauled their key rivals for the fourth and final play-off spot. This was the best possible fillip for Fowler’s men, as they seek to grow that one-point advantage. Ranger's Newcastle loanee Haris Vukic (left) attempts to block a shot by QOTS' Chris Higgins . New manager Stuart McCall (right) suffered his first defeat since taking charge of the Ibrox club . Rangers were without suspended skipper Lee McCulloch – banned after a red card for an elbow on Hearts’ Osman Sow at the weekend – which meant a starting role for Bilel Mohsni alongside Marius Zaliukas at the heart of the defence. There was little to trouble either backline in the initial exchanges, as the game developed at a rather sedate pace. McCall watched it unfold pensively. Clearly, what he was seeing wasn’t to his liking. His side did have flickers of threat early on, but they often owed much to fortune. Andy Murdoch saw a mis-hit cross clawed out by Zander Clark, before a similar delivery from David Templeton looped fractionally over. The winger was another change to McCall’s line-up and he saw plenty of the ball before the break, without making it amount to a great deal. QOTS's Kidd (left) Rangers fends off David Templeton of Rangers as he runs with the ball . Lyle (2nd left) opened the scoring following a first-half corner in the 3-0 defeat of Rangers . Lyle (centre) wheels away after putting the hosts in front with a strike on 33minutes . One neat bit of skill saw him drift infield from the left flank before thumping a shot just too high. Another powerful swipe was blocked by Andy Dowie’s head – at the expense of ringing ears. Queens had offered even less up front throughout this spell, but suddenly sprang into life to claim the lead after 33 minutes with pretty much their first serious attack. Daniel Carmichael swept play wide to Lewis Kidd who took on Wallace. The Ibrox left-back toppled, apparently looking for a foul that wasn’t there, allowing Kidd to break into the penalty area. His cut-back found Lyle, who took a touch on his left foot before dispatching a sweet finish off his right. The home fans roared approval, barely having time to draw breath before the advantage was very nearly doubled. Lyle set up Reilly and his daisy-cutter drew a fine stop from Lee Robinson at full stretch. The QOTS striker acknowledges the home supporters after making the score 1-0 in the first half . Play continues as a flare is let off in the Rangers section of the crowd at Palmerston Park . QOTS goalkeeper Zander Clark ensures Rangers' Bilel Mohsni does not find the back of the net . Rangers used the shock to stir them into greater vigour. Nicky Clark was close with a brave effort from a Darren McGregor cross, which led to him being flattened by his namesake in the Queens goal. Then, after a Haris Vuckic corner caused uncertainty, Kenny Miller sent a looping header against the bar. The first half duly closed with a penalty shout from Wallace after he tangled with Mark Durnan. Referee Don Robertson remained unmoved. Far worse followed for Wallace 16 seconds after the restart as he got the final touch to his side’s second concession of the evening. Kidd celebrates after forcing an own goal from Rangers Lee Wallace immediately after the break . QOTS's Gavin Reilly (left) demonstrates a calm finish to put his side 3-0 to the good . Ibrox minds still appeared to be in the dressing room as Reilly surged into the box and sent a low cross speeding through the six yard box. It reached Kidd beyond the far post, who angled a drive back towards goal. Off balance, Wallace attempted to clear from the line but only succeeded in helping the ball into the net via his heel. Rangers were rocking. They looked shaken by the energy of their hosts. Fowler’s side seemed to be first to the ball in every area. Templeton collected a booking for diving after attempting to go past Durnan, but creating clear chances remained a trickier task. Not long after, the winger was replaced by Robbie Crawford. Clark saw a deflected effort held, before a Mohnsi effort from distance was shuttled round the post. Yet there still wasn’t a convincing edge to these attacking forays. The fluidity witnessed against Hearts at the weekend had disappeared. Scott Hooper applauds the home support as he leaves the field followed by dejected Rangers players . Queens were now content to try and pick Rangers off when they could. And they notched their clinching third goal after 69 minutes. Holt nicked possession away from Crawford and worked a little exchange that released Reilly. The flag stayed down as he calmly slotted beyond Robinson. Rangers attempted a pride-saving late flurry but found Clark in excellent form in the home goal. Notable saves from Vuckic and substitute Kris Boyd ensured McCall’s side would exit without even a sliver of consolation.
Rangers were beaten by Queen of the South in the Scottish Championship . Derek Lyle opened the scoring for the hosts following a first-half corner . Lee Wallace own goal doubled the Doonhammers' lead after the break . Gavin Reilly completed the upset that dents Gers' hopes of second place .