Lancaster City booked a place in the final of their own competition as a Sam Unwin goal was not enough for Ne-Jai Tucker and his Burnley Under-23 teammates to mount a successful fightback.
Unwin – who signed his first professional contract at Turf Moor earlier this summer – leveled early in the second half at the Giant Axe.
But City quickly regained the lead from the penalty spot to secure a victory that means they will now face Clitheroe in the final of the four-team Lockstep Trophy on Saturday.
Burnley will meet Ashton Athletic – 1-0 losers at Clitheroe in the other semi-final – in a third-fourth place play-off back at Lancaster earlier on the same day.