Director of Youth Mike Dove was left feeling 'gutted' as the Dons Under-18s conceded two late goals to lose 4-3 at Leicester City.
The Dons looked set for three points against their City opponents but two goals in the final three minutes of the game turned the result on its head.
Dove's Dons enjoyed a fine start to the game, playing some of their best football of the season before carving an opening on the quarter-of-an-hour mark when Joel Gyasi's through ball to Awadh Ahmed allowed him to hit an effort from the left of the box into the bottom corner.
Leicester hit back by upping the pace and began to find their way into proceedings, yet it was the Dons who could have added to the score line when George Williams was found in space in the box only to drag a shot wide of the post.
However, the Dons soon found their way through to the Leicester defence again when Awadh Ahmed intercepted a pass from the City centre-back and fired a low strike home via the inside of the post.
The City side fought back though, forcing the play to become stretched and the Dons became fragile at the back. With ten minutes to go before the interval Leicester were able to pull a goal back when Harry Panayiotou picked up the ball in the final third, moved unmarked to the edge of the 18-yard box and picked out the back of the net.
Leicester continued to make inroads and managed to level the scores when Matt Robinson got the better of Jordan Ivey-Ward to make it 2-2 a minute before the break.
Dove said: "It was disappointing not to go in at half-time in front, but the players were given a pat on the back for playing great attacking football and for being brave in the play. When we get the attacking side right we can't neglect our defensive duties which is what we did at times."
Early in the second half the Dons could have regained the lead on two occasions with Ben Walster and Williams sending efforts over the bar. A third goal did come for the Dons in the 69th minute when a foul on Gyasi presented him with a penalty which he duly converted from the spot.
However, a late twist was to follow as City broke down the left of midfield and the Dons failed to cut out a cross which Panayiotou turned in and the Leicester striker bagged his hat-trick a minute later when he bounced on a sloppy pass from Spence to seal a late three points for the home side.
Dove said: "Their manager spoke to me at the end of the game and told me we gave them a footballing lesson. We were courageous in our play, we took risks at the back and I was gutted for their effort went unrewarded because of a late mistake.
"It was one of our best performances of the season in terms of our work rate at the bravery in play."
MK Dons Under-18s: Bragg; Spence, Ivey-Ward (c), Walster, Plowright; Gyasi, Lobjoit; M Ahmed; Powell (F Ahmed 65), Williams, A Ahmed.
Subs not used: Burns, Hickford, Osae, Alli.