Tyrone came from six points behind to win their first Dr McKenna Cup title since 2007 at the Athletic Grounds.
The Red Hand surged clear in the second half, after Derry’s early dominance crumbled following the 18th minute dismissal of midfielder James Conway.
In a repeat of last year’s decider, Tyrone played some sparkling football in the second half, and would have had an even greater winning margin had Cailean O’Boyle not netted a late penalty.
Derry opened out a six points lead after Paddy Bradley had slotted a 16th minute goal.
Paddy Bradley shot the Oak Leafers into a two points lead with two frees in the opening six minutes, one of them a sweet effort from 45 metres.
They lost the influential Gerard O’Kane to injury after just eight minutes, but went further ahead with a trademark Mark Lynch point as the Red Hand struggled to find their feet.
Colm Cavanagh’s sublime pass sent Mickey Murphy in for Tyrone’s opening score in the 12th minute, but Derry seized control with Bradley’s 16th minute goal.
The Glennulin man collected James Conway’s drive free to step past two challenges and plant the ball in the net from close range.
But Conway’s game was over less than two minutes later when he received a straight red card for what looked an innocuous challenge on Colm Cavanagh.
Cavanagh also exited the action on a stretcher a short time later, sparking concerns over the midfielder’s availability for next weekend’s Allianz National Football League opener against Kildare.
Fourteen-man Derry continued to call the shots, with Lynch firing over a wonderful point from the sideline, and Conleith Gilligan steering over a free to put them six clear.
Tyrone, living off scraps, had scores from Peter Harte and a Stephen O’Neill free, but in stoppage-time they cut loose, with Owen Mulligan firing in a goal following a neat build-up from Dermot Carlin and Joe McMahon
Cathal McCarron’s point sent the sides in level on 1-05 each at the break, and Tyrone pushed on after the break with another string of points, including sublime efforts from Stephen O’Neill and the impressive Mattie Donnelly.
Derry’s two scores in the third quarter came from Gilligan frees, and their brief skirmishes into opposition territory failed to interrupt the Red Hand momentum.
Murphy, back in action following a lengthy battle against injury, lifted his game in midfield, while Mark Donnelly was a creative force and Mattie Donnelly fired over two more quality scores.
Six of Tyrone’s scores came from half backs and midfielders, with Cathal McCarron pushing forward to hit his second.
They were seven points clear as the game slipped into stoppage time, when O’Boyle slotted home a consolation penalty.
Tyrone: J Devine, A McCrory, Justin McMahon, PJ Quinn, C McCarron (0-02), P Harte (0-01), D Carlin (0-01), M Murphy (0-02), C Cavanagh, Mattie Donnelly (0-03), P Hughes, M Penrose, O Mulligan (1-01, 0-01f), Mark Donnelly (0-01), Stephen O’Neill (0-02, 1f).
Subs: Joe McMahon for Cavanagh (20), J Lafferty for Penrose (49), Sean O’Neill for Justin McMahon (52), S McNulty for Murphy (67), R O’Neill (0-1) for Stephen O’Neill (67)
Derry: D Devlin, D McBride, L Morrow, R Dillon, G O’Kane, B McCallion, SLGoldrick (0-01), J Conway, J Diver, C McKaigue, M Lynch (0-02), B McGoldrick, C O’Boyle (1-00, pen), P Bradley (1-02, 0-2f) , C Gilligan (0-03, 2f).
Subs: N Forrester for O’Kane (8), K O’Neill for Forrester (40), PJ McCluskey for Diver (51), M Craig for R Dillon (53), E Lynn for Gilligan (62)
Referee: M Higgins (Fermanagh).