Arbroath brought Berwick's 14-game unbeaten record to an abrupt end with a steely performance which suggests they are turning the corner after a sluggish start to the season.
"Hopefully we can now go on a bit of a run and start challenging for at least a play-off place," said Arbroath manager John McGlashan after watching his side secure its biggest win for many years.
The game got off to a whirlwind start, and Paul Watson had to hook a David Murie shot off the line to prevent Berwick taking a lead.
Arbroath soon took the initiative, however, and had two penalty claims turned down, firstly when Alan Brazil tumbled in the box, then when Pat Clarke appeared to be nudged off the ball.
At the other end Kevin Haynes forced Mark Peat to make a good save.
The home side deservedly took the lead after 19 minutes following a spell of sustained pressure. A Paul Watson cross into the box was powerfully headed home by Steven Rennie.
Rangers had chances to equalise, with Chris McGroaty, Kevin Garden and David Murie all coming close.
Arbroath upped the tempo and went further ahead on the stroke of half-time when Jay Stein fired home a 20-yard free-kick after Kevin McMullan had been fouled by Grant McNicoll who was booked.
Berwick's hopes of a comeback were put to the sword five minutes after the break when Arbroath went further ahead. Stein sent a defence-splitting pass into the path of Brazil, who shot low past Coyle.
Brazil returned the compliment in the 68th minute when he broke away down the right and crossed for Stein to shoot home for his second goal of the afternoon.
Berwick manager John Coughlan refused to blame his players for a disappointing result. "It's disappointing for a record to end in this way," he said. "But I can't criticise the players too much. They have been magnificent all season and we're still top of the league.
"What's important now is how we respond to this result when we play Spartans in the Scottish cup next week."