The home side made a reasonable start and recorded the games first shot on target on 11 minutes when Kevin McMullan tried his luck from the edge of the box and his powerful shot deflected off Michael Dunlop and safely into the arms of keeper Mark Cairns.
The visitors gradually began to take control and Arbroath keeper Mark Peat made a brilliant save to deny Mark Ferry.
However, seconds later on 22 minutes there was nothing the Arbroath custodian could do to deny Alan Trouten who slammed home from 6 yards after decisive play from Richard Bowers.
The home side looked shell shocked and Queens took full advantage on 30 minutes when Bowers beat his marker to a curling Ferry cross and hit a perfect volley beyond the exposed keeper.
The home side made a double substitution at the break in a bid to rescue something from the match but it wasn't until the 71st minute that they got some reward. Out of the blue Barry Sellars surged forward from the centre circle and lashed home a 30 yard drive which was just out of the reach of Cairns as he scrambled across his line.
The Smokies almost levelled seconds later but Cairns did just enough to block an Andy Reilly shot before Steven Cook was a fraction away from tucking home the loose ball.
Cook was again unlucky not to find the target when he rose high to meet a Jay Stein cross only to see his header cleared off the line.
With seconds remaining Arbroath won a free kick on the edge of the box but Sellars low drive crashed straight into the wall before the final whistle sounded.