A bonkers cup tie saw three penalties awarded and a stoppage-time winner in front of enthusiastic split support.
Celtic snatched a lead against the run of play in the second half with Chloe Craig firing home a penalty after a handball against Kathryn Hill.
The Rangers defender made up for her error shortly after though as she forced over the line after a stramash in the box.
With ten minutes left Rangers turned the match on its head as Rio Hardy cut back for Kirsty Maclean who coolly slotted into the bottom corner.
With one minute left, though, Celtic were awarded a second penalty, this time Tessel Middag was adjudged to have fouled in the box even if TV replays suggested she got more than a fair touch on the ball. Craig made no mistake to level again.
But Rangers would have the last laugh to seal the win with a penalty of their own after 95 minutes. Caitlin Hayes had pulled down Hardy in the box and the Rangers striker blasted home to win and send her side into the final.
Cruel start for Elena Sadiku
It was always going to go one of two ways for new Celtic boss Elena Sadiku.
Either, a memorable triumph over rivals Rangers in her dugout debut, or a cruel defeat.
However, no one could have called such a difficult defeat with a losing goal coming with seconds left in added time.
Sadiku wants to be the Queen of Queens for Celtic and that could still come to pass, but as evident at the Excelsior there will always be bumps along the way.
Rangers get the job done
With 12 goals in their previous two outings, it was always expected Rangers would score.
Perhaps less predictable would be the somewhat blunt attack as Jo Potter’s side struggled to find a cutting edge.
Multiple opportunities were passed up, and more denied by the impressive Kelsey Daugherty and the Celtic defence.
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