The Rebels ran out 30-27 victors in Brisbane on Saturday to claim their first ever win over the Reds.
Having not lost to the Rebels in any of their previous six meetings, the loss at home represented a new low for the Reds.
They ended the game with 14-men after Ed O'Donoghue saw red for an apparent eye-gouge.
The Rebels were rewarded for their willingness to keep the ball in hand, mixing moments of magic with mediocrity, showcasing the reasons why this was only their fourth victory of the season.
Mike Harris opened the scoring for the Reds before Tom Kingston and Luke Burgess hit back for the Rebels. Burgess, who was lively all night before going off through injury, burst past a couple Reds defenders including a flailing Will Genia to score under the posts.
The teams headed into the break at 17-17, but the Rebels pulled ahead early in the second half with a second try from Burgess.
The Reds fought back to level the scores going into the final minutes, but it was a controversial decision to award the Rebels a late penalty that ultimately decided this one.
Woodward slotted the penalty to give the Rebels their own historic victory, as the Reds hit rock bottom.
Reds – Tries: Mike Harris, Greg Holmes, Ben Lucas. Conversion: Quade Cooper, Mike Harris (2). Penalties: Harris (2).
Rebels – Tries: Tom Kingston, Luke Burgess (2). Conversions: Jason Woodward (3), Penalty: Woodward (3).
Reds – 15 Mike Harris, 14 Dom Shipperley, 13 Ben Tapuai, 12 Anthony Fainga'a, 11 Jamie-Jerry Taulagi, 10 Quade Cooper, 9 Will Genia, 8 Jake Schatz, 7 Beau Robinson, 6 Curtis Browning, 5 James Horwill, (c) 4 Rob Simmons, 3 Greg Holmes, 2 James Hanson, 1 Ben Daley.
Subs: 16 Saia Fainga'a, 17 Albert Anae, 18 Jono Owen, 19 Ed O'Donoghue, 20 Dave McDuling, 21 Nick Frisby, 22 Ben Lucas, 23 Rod Davies.
Rebels – 15 Jason Woodward, 14 Tom Kingston, 13 Tamati Ellison, 12 Mitch Inman, 11 Tom English, 10 Bryce Hegarty, 9 Luke Burgess, 8 Scott Higginbotham (c), 7 Scott Fuglistaller, 6 Colby Fainga'a, 5 Luke Jones, 4 Cadeyrn Neville, 3 Laurie Weeks, 2 Pat Leafa, 1 Toby Smith.
Subs: 16 Steve Fualau, 17 Cruze Ah-Nau, 18 Paul Alo-Emilie, 19 Hugh Pyle, 20 Sean McMahon, 21 Ben Meehan, 22 Jack Debreczeni, 23 Telusa Veainu.
Photo: Chris Hyde/Getty Images
