Under-18s pipped late at Worcester
The young Falcons are just one point behind third-placed Sale Sharks with a game in hand following the Sixways clash, in which a late penalty for the home side proved the difference.
Newcastle had battled back from 12-0 down, scrum-half Ben Douglas sniping over with the conversion hitting the post.
England Under-18s wing Matty Ward then went the length for an interception try to level things up at 12-12 just before half-time.
Even when they went seven points down hooker Ollie Fletcher responded with a try from a driving maul, but the late penalty sealed the result to leave the Falcons with two wins from their four games to date.
Newcastle Falcons Under-18s are next in action on Saturday when they take on Yorkshire Carnegie in Selby (kick-off 12.30pm).