The Diggers' rink of Mason Glenn, Archie Webster, Rod Reid and Craig Taylor endured a difficult start on rink four, trailing by 16 shots before finally opening their account with a two on the seventh end.
They battled hard to work their way back into the contest and had reached double figures by the 16th end, but Deniliquin Bowling Club maintained control throughout.
Despite a late rally that added another five shots to the Diggers' total, Taylor's side ran out of ends and went down 25-15.
On rink three, Jo Chick, Chris Frampton, Garry Hulm and Tony King were locked in a close battle early, trailing 5-4 after five ends.
The Diggers seized the initiative through the middle stages, outscoring their opponents 7-3 over the next five ends to establish an 11-8 advantage.
Scores were level at 13-all after 15 ends before Deniliquin Bowling Club finished strongly, conceding just one shot over the closing ends to record a 24-14 victory.
The match of the day came on the remaining rink, where Jake Glenn, John Wilson, Callan Glenn and Niels Hilton produced an extraordinary turnaround.
Things looked bleak for the Diggers early as they failed to score until their opponents had raced to a 20-shot lead.
A single on the ninth end finally broke the drought before they gradually chipped away at the margin. By the 15th end they had reduced the deficit to 22-12 and still appeared headed for defeat.
Refusing to surrender, the Diggers restricted Deniliquin Bowling Club to singles while compiling scores of four and seven shots themselves.
The momentum swung dramatically and, after trailing by 20 shots, they stormed into the lead at 23-22 after the 17th end.
Over the final ends both sides added singles, with the Diggers holding on for a stunning 25-24 victory.
Callan Glenn played a significant role in the comeback and was awarded Best on Ground honours for his outstanding performance and sportsmanship from the third position.
Despite the memorable rink win, the Diggers claimed just one of the three rinks and went down overall 73-54.
The result earned the side two ladder points and leaves them seventh on the Division 3 standings.
The Diggers will be looking to bounce back next weekend when they travel to face fourth-placed Mathoura.
In Division 5, the Diggers were unable to take the green against Tongala after the visitors were forced to forfeit due to a shortage of players.
Division 5 returns to action this Saturday with a local derby against Deniliquin Bowling Club. The Diggers currently sit second on the ladder with 28 points.
Midweek Pennant
Deni RSL's Division 2 side will make the short trip across town to take on Deniliquin Bowling Club, with play beginning at 10am.
Teams are:
G Goodwin, A Webster, R Marchetti, B Murray (s).
P Harris, M Bennett, J Chick, C Taylor (s).
A Hodges, J Wilson, G Hulm, N Hilton (s).