Terence O'Brien helped himself to two goals as Derry coasted into the semi-finals at Healy Park last night.
The Oak Leafers possessed too much class and finishing power for a Donegal side coming off the back of a preliminary-round win over defending champions Cavan.
Just 90 seconds had elapsed when O'Brien dispossessed Donegal goalkeeper Daniel Mullarkey to slot home from close range.
Peter Cassidy fired over a couple of gems, and Gerard Bradley also scored twice, but Donegal showed their battling qualities as Ryan McHugh and Conor Harkin kept the deficit to 1-6 to 0-4 at the interval.
Bradley added another couple to his tally and sent O'Brien through for his second goal, finished clinically to the top corner in the 39th minute.
Donegal pulled back a goal from a penalty through skipper Ryan McHugh after substitute Sean Fitzgerald was fouled but their challenge fell short.
SCORERS - Derry: T O'Brien 2-1 (0-1 '45'), G Bradley 0-4 (1f), P Cassidy 0-2, R McDonnelly, R Bell 0-1 each. Donegal: R McHugh 1-2 (1-0 pen, 0-1f), C Harkin (1f), J McGarvey 0-2 each, H McFadden 0-1.
Derry - C Bradley; D Brown, M Sweeney, G Doyle; G McKinless, C McAtamney, C Carville; P Cassidy, R McDonnell; J Kearney, C McFaul, T O'Brien; G Bradley, R Bell, R Moore. Subs: C Gallagher for McKinless, R Dougan for Moore, A McNicholl for Kearney.
Donegal - D Mullarkey; G Kelly, C Parke, J Rose; S McBrearty, M Gallagher, D Mulgrew; B McNelis, R McNamee; C Harkin, J McGarvey, A McGinley; R McHugh, W Gillespie, E McHugh. Subs: H McFadden for McGinley, S Fitzgerald for Rose, C McGettigan for McGarvey, C Gallagher for Gillespie.
Ref - B Rice (Down).