Dundalk stretched their lead at the top of the table when two first-half goals saw them triumph at Athlone Town Stadium on Monday evening.
Eric Lavine had early chances for Athlone, while Town goalkeeper Danny O’Leary did well to twice deny Paul Smyth from close range.
After 19 minutes Smyth again tested O’Leary who needed a second attempt to deny the Dundalk number nine.
Ten minutes from the interval the game turned Dundalk’s way when referee Mark Gough awarded the Lilywhites a penalty.
Goalkeeper Chris Bennion launched the ball forward and as Philip Hughes advanced into the penalty area from the left his cross was adjudged to have been handled by Michael Harty. It was a controversial decision, but Shaun Williams made no mistake as he sent the goalkeeper the wrong way.
Last chance of the half fell to Athlone's Colin Fortune but his free-kick was tipped over the bar by Bennion.
On the hour mark Williams was denied by the woodwork as his shot rebounded off the post with O’Leary stranded.
Best chance of an Athlone goal came after 66 minutes when Paul McTiernan's shot was cleared off the line by John Flanagan.
Philip Hughes could have made it 3-0 after 83 minutes but saw his shot deflected past the upright by Ronan Frawley.
Steven Gavin and Eric Lavine had late attempts on goal for Athlone but the visitors held on to record their fourth clean sheet in a row and stretch their lead over Athlone at the top to fourteen points.
Athlone Town: O’Leary, Harty (Carberry 49), Young, Frawley, Sheridan (McCarthy 71), Fortune, Gavin, Heffernan, Lavine, McTiernan, Casey (Hardy 49).
Dundalk: Bennion, Flanagan, McGauley, Lynch, R. Dunne, Marney, O’Connor, Williams, Smyth (Perth 79), Hughes (Mulvenna 85), K. Dunne (Doran 67).
Referee: M Gough