A controversial penalty award was the difference between the teams in a drab encounter at Ochilview.
Stenhousemuir had dominated the first period of the game without really testing Jim Butter in the Montrose goal. The only real threat came in the 20th minute when a Tommy Sinclair corner kick eluded everyone and struck the far post.
Paul Murphy then beat Butter with a header but Barry Donachie cleared off the line, although there were suspicions of a hand being used.
The home side did have the ball in the net in the 40th minute through Paul McGrillen, but the strike was disallowed for offside.
The Warriors were to rue the fact that they failed to make their possession count when Montrose took the lead three minutes after the resumption. Graeme Sharp used his pace to cut into the box and then fell over the trailing leg of David Morrison for a dubious penalty. Craig Smart managed to squeeze the ball past Willie McCulloch to put Montrose ahead.
They should have made it 2-0 a minute later, but McCulloch made a fine stop from Duncan McLean who then blasted the rebound over the bar.
Montrose continued to look the more likely side to score, despite Stenhousemuir throwing more players forward. Craig Smart thundered in a shot which McCulloch brilliantly kept out, and when the rebound fell to Craig Watson he made yet another inspired save.
With the game in stoppage time the Warriors should have been reduced to 10 men when Tony Smith kicked out at Donachie, but the referee Steven Finnie appeared to be in a benevolent mood when he only issued a caution. This result kept Montrose in prime position for third place in the league.