It was a Dr McKenna Cup final to savour, as Derry claimed a first title in 12 years in a thrilling encounter at the Athletic Grounds
Derry led by eight points at half-time, but had to come from behind to get the better of resurgent Tyrone.
The Oak Leafers needed a boost, after suffering a heavy NFL defeat at home to Laois last weekend, and this win over local rivals Tyrone should do the trick.
Some pre-match jostling led to Derry defender Gerard O'Kane picking up a booking before the ball was thrown in, after he tangled with Sean Cavanagh.
Paddy Bradley provided the assists for Martin Donaghy and Sean Leo McGoldrick to kick the scores that eased Derry into a two points lead after eight minutes.
John Brennan's men were four points ahead, with Enda Muldoon and paddy Bradley converting frees, before Tyrone got their first score through Sean Cavanagh in the 13th minute
With James Conway and PJ McCloskey getting the better of Kevin Hughes and Aidan Cassidy at midfield, the Oak Leafers carried a much greater threat going forward
Bradley's second free made it 0-5 to 0-1 after 20 minutes, and a disorganised and out of sorts Red Hand side was struggling to make any impact.
Tyrone did pull a point back with a Cavanagh free, but Derry were able to deal with a period of pressure with some assured defending from Kevin McCloy and Gerard O'Kane.
And Derry went eight points in front in the 35th minute when Muldoon rose high to field Sean Leo McGoldrick's delivery, turned and slotted to the net.
Derry led by 1-7 to 0-2 at half-time, but an inspired Red Hand side threw everything at them after the restart.
They hit 1-6 without replay, with Martin penrposer, Sean Vavanagh and Owen Mulligan hitting quality points, before Cavanagh cut in to rifle home a goal from a tight angle.
But after going behind, Derry responded with an unlikely goal from corner back Ciaran Mullan.
The Bradley brothers hoisted points to open up a three points lead, and a supebr Enda Muldoon point had them five ahead deep into injury time.
Tyrone were not finished yet however, and substitute Stepehn O'Neill swept home a goal, but Derry held on for the silverware.
Tyrone: P McConnell, A McCrory, D McCaul, PJ Quinn, C McCarron, R McMenamin, M Swift, C Gormley, A Cassidy, K Hughes, B McGuigan, S Cavanagh (1-5, 0-4f), O Mulligan (0-2), M Penrose (0-4, 2f), M Donnelly.
Substitutes: D Harte for Quinn (25), Justin McMahon for McCrory (h-t), S O’Neill (1-0) for Donnelly (56), Joe McMahon for McCarron (64)
Derry: D Devlin, C Mullan (1-1), K McCloy, D McBride, B McCallion, A McAlynn, G O’Kane, PJ McCloskey, J Conway, M Donaghy (0-1), SL McGoldrick (0-1), E Bradley (0-1), C McGoldrick, P Bradley (0-6, 5f), E Muldoon (1-2, 0-1f).
Substitutes: B McGuigan for McCallion (4), M Drumm for McGuigan (55), C McGoldrick for Conway (58), B McAlarey for Drumm, D Mullan for C McGoldrick
Referee: J Whyte (Donegal).