Donegal having lost the last two finals looked set to a repeat performance, but Mathewson got his second goal of the afternoon, and the fate was sealed for the NHL Division Four champions.
Tyrone were the early pacemakers with points from Rory O’Neill points, but Donegal responded through Mickey McCann and Niall Campbell.
Donegal fell behind by four points but in the 20th minute Ciaran Mathewson collected a long delivery from the back to raise the green flag.
Donegal went into the break with a 1-7 to 0-8 lead. Tyrone fought back in the second half and were two points to the good in the dying moments when Tir Choinaill came back to grasp a famous victory.
Donegal scorers: C Mathewson 2-3, N Campbell 0-6, 4f, 1 ’65), M McCann, S McVeigh, P Sheridan 0-1 each.
Tyrone scorers: J Kelly 0-5 (3f), A Kelly (2f), C Grogan, P O’Connor 0-3 each, R O’Neill (0-02), G Fox 0-1.
Donegal: P O’Brien, S O’Connor, C Breathnach, A McDermott, J Donnelly, C Dowds, J Boyle, S McVeigh, P Sheridan, E Organ, S Boyle, C Mathewson, M McCann, E McDermott, N Campbell.
Subs: P Hannigan for Organ, L Henderson for McCann, M McGhee for S Boyle
Tyrone: J Devlin, Ryan O’Neill, D Maguire, R Winters, SP Begley, S Donnelly, M Grogan, C Gallagher, M O’Gorman, G Fox, J Kelly, A Kelly, C McErlean, Rory O’Neill, C Grogan.
Subs: P O’Connor for McErlean, T Hughes for O’Gorman, M Winters for A Kelly
Referee: F Smith (Meath)