The Swifts ended Distillery's six-game unbeaten run with a JJB Sports Premiership win at New Grosvenor.
Curtis Allen netted for the Whites but it was ruled offside while Dungannon keeper Dwayne Nelson made a string of fine saves.
Dwyane McManus won it for Dungannon on 56 minutes when he pounced on a loose ball before firing past Distillery stopper Philip Matthews.
Nelson was again the Swifts hero when he tipped away Gary Muir's free-kick.
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