Telford inflicted promotion-chasing Doncaster's first home defeat of the season with an excellent performance in a game packed with action and controversy.
United should have had another goal when Paul Moore fired into the back of the net when they were 1-0 up in the 67th minute.
But the ball came back off the stanchion and referee Steve Ward waved play on although later admitted his error after the match.
Telford boss Jake King, who was irate at the time, said later: "The referee has apologised to me and said there had been a mistake.
"Everybody makes them and I don't have a problem with that so I shook his hand.
"Fortunately it didn't affect the result but it could have been costly because they went straight upfield while we’re celebrating and almost got an equaliser." Doncaster manager Dave Penney said: "It looked a goal from where I was standing and our players thought it had gone in as well.
"It was a lifeline for us which we didn't take because although we had lots of possession, we never really looked like scoring." Telford were lively at the start with new on-loan striker Dave Cameron from Chester linking up well in attack.
Cameron had a close-range header tipped over the bar by Andy Warrington after latching on to a left-wing cross from Gareth Hanmer in the third minute.
Doncaster played too many sideways and backwards passes in the early stages to the dismay of their fans who urged them to take a more direct approach.
Lively teenage midfielder Paul Green twice went close before the visitors took the lead in the 15th minute.
Cameron threaded a clever pass through to former Doncaster striker Peter Smith in the penalty area and he fired between the keeper's legs and into the net.
Robert Gill volleyed widely off target when Doncaster tried to hit back before Cameron sent an angled drive just wide in the 20th minute.
Moore missed two clear-cut chances for the visitors just before the interval and Doncaster rode their look to adopt a more attacking approach in the second half.
Green had a header tipped over the top following a free-kick in the 59th minute before Telford had their goal disallowed in controversial circumstances.
But it made no difference when substitute Ronnie Sayer hammered home the second goal via the upright following a corner in the 76th minute.
Moore wrapped up the points when he juggled with the ball before slotting it past home keeper Andy Warrington after latching onto Smith's pass in the 83rd minute.
Paul Barnes grabbed a consolation goal for Doncaster a minute later but it was too little too late for the home side who were well off form.