The Reserves suffered their first Barclays Premier Reserve League defeat since September as Aston Villa claimed the league title for the third year running, with a two-one victory at their Bodymoor Heath Training Ground.
The Whites took the lead through a first-half Michael Uwezu strike, but two goals in as many minutes from the home side proved to be enough to secure all three points and the silverware.
John Pantsil continued his return to full fitness, making his second start for the Development Squad following his recovery from a knee injury.
The Whites had to be on top of their defensive duties almost immediately after kick-off as the home side created a couple of dangerous attacking situations in the opening minutes, with Marc Albrighton and Andreas Weimann in particular looking a threat.
Fulham did a fine job of soaking up the pressure and they took the lead on the 13 minute mark with an incisive piece of counter-attacking play. Keanu Marsh-Brown raced clear down the right flank before cutting the ball back into the path of Michael Uwezu who finished well past Andy Marshall.
But the Whites were rocked by a two-goal salvo just after the half-hour mark. The home side drew level on 30 minutes after a deflected effort from Barry Bannan flew past Neil Etheridge. Villa then took the lead shortly after the restart when Ciaran Clark rose highest in the Fulham penalty area to head into the net.
To Fulham's credit, Villa's goals did little to change the pattern of play as the Whites maintained their shape and looked to get themselves back into the game.
The Whites made a fine start to the second-half and almost got back on level terms when Matthew Briggs forced Villa keeper Marshall into action. The Fulham defender did well to direct a firm header from Chris Buchtmann's corner on target but he was denied by a spectacular save.
Billy McKinley looked to add some fresh legs to Fulham's attacking line when he replaced Stefan Payne with Italian Under-19 international, Marcello Trotta. Villa then came close to extending their lead when Bannan struck the woodwork with a free-kick from 20 yards.
After a promising start to the second period, the pace of the game slowed somewhat before picking up again in the closing minutes. Trotta almost capitalised on a good opportunity before Villa struck the post for the second time through Collins.
Unfortunately the Whites were unable to force the equaliser and will now turn their attentions towards preparations for this Thursday's encounter against Portsmouth at Motspur Park (kick-off 7pm).
Fulham: Etheridge; Smith, Briggs, Pantsil, Toure; Andranik (Harris 90), Marsh-Brown, Milsom, Buchtmann; Payne (Trotta 52), Uwezu
Subs not used: Bettinelli, Pierre, Marquez-Sanchez