Shelbourne's first win in six games edged them closer to a first Premier Division title since 2006 after a stunning second-half crescendo saw off Waterford at Tolka Park.
In this mini run of three games to the finish, a late penalty from Sean Boyd and a stunning Liam Burt strike maintained Shelbourne's two-point lead over Derry and Shamrock Rovers with two games remaining.
Padraig Amond threatened to be the latest to derail Shelbourne's title bid when his penalty put Waterford in front, but Boyd levelled before he struck again from the spot to put Shels ahead ten minutes from time.
Substitute Burt made sure of a crucial three points in sumptuous fashion to reinstall belief that Damien Duff's side can go all the way.
Shelbourne arrived with just one win in ten while Waterford had won just twice in that spell, so the first half an hour was expectedly timid before the game burst into life.
Boyd slipped in Ali Coote but as he swivelled inside and out, he struck straight at Sam Sargeant.
Shelbourne began to emerge from their shell and almost pounced on a Barry Crowe-Baggley slip but Rayhaan Tulloch again fired into the arms of Sargeant.
Shelbourne still looked indecisive and that was reflected in the chaos that unfolded after Kameron Ledwidge mistakenly let a ball run wide for a Waterford corner.
From the corner came a Waterford penalty, but the decision to blow for a spot kick was questionable.
Referee Rob Hennessey judged John Martin to have taken out Grant Horton but replays showed the former Waterford man was bundled into the challenge by Darragh Power.
Amond rubbed salt into the wounds and slammed the ball into the bottom corner for his 13th of the season after 37 minutes.
Shelbourne responded immediately and Boyd became the patron saint of lost causes when he hunted down Darragh Leahy and was rewarded for his perseverance as he pinched the ball and finished beautifully to level affairs.
Shels dominated possession after the interval but struggled to create anything and it was Waterford who had the next big chance on the hour mark. Christie Pattisson skipped by Ledwidge and Amond flicked the ball over from ten yards out.
In a game Shelbourne desperately needed to win, all the pressure of a tense Tolka Park rested on the shoulders of Boyd and the sell-out crowd erupted as his 80th minute penalty clipped the underside of the bar and went in after Pattisson took down Tyreke Wilson.
Moments later it was panic stations at the back for Shelbourne again but Conor Kearns produced a stunning save to deny Dean McMenamy, which proved to be of equal importance.
FULL MATCH DETAILS
While Shels' two goals were about perseverance, their third was a piece of individual brilliance from Burt who went on a mazy run and lashed the ball into the top corner.
Shels began to enjoy themselves and Harry Wood rattled the crossbar from distance as the hosts saw out a huge win.
Shelbourne: Conor Kearns, Sean Gannon, Tyreke Wilson, Kameron Ledwidge, Mark Coyle, Sean Boyd, John Martin (Aiden O'Brien 61), Ali Coote (Liam Burt 41), Evan Caffrey (Jonathan Lunney 73), Paddy Barrett, Rayhaan Tulloch (Harry Wood 73).
Waterford: Sam Sargeant, Darragh Power, Ryan Burke, Grant Horton, Ben McCormack, Barry Croew-Baggley, Padraig Amond, Darragh Leahy, Christie Pattisson, Dean McMenamy (Sam Bellis 85), Shane Flynn (Rowan McDonald 75).
Referee: Rob Hennessey.
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