Goals from Dale Hilson, Adam Eckersley and John Baird helped Forfar move back into second while Andy Munro was harshly sent off late on.
Former Loons loanee Russell Dingwall tested Marc McCallum early on while at the other end Dylan Easton and John Baird tried their luck without success.
Easton saw his shot deflected wide in the 11 th minute and three minutes later Brad Spencer was denied by the feet of Graeme Smith following his 25 yard effort.
Michael Travis was next to miss the target following Thomas Reilly’s corner before Smith held Baird’s long range strike.
The hosts came close through Dingwall again when he fired across the face of goal in the 20th minute and just three minutes later Forfar were ahead.
A good passing move ended with Spencer giving the ball to Baird, who turned and slipped a perfect pass through the defence for Dale Hilson to stroke into the bottom corner. The lead was doubled in the 26 th minute when Reilly’s corner towards the edge of the box found the unmarked Eckersley and he shot through a pack of players for his second goal in a Loons shirt.
Warriors duo Greg Hurst and Andy Munro fancied their chances at scoring against their previous club but neither of them could find the target.
Stenhousemuir came out from the break eager for an early goal as Alan Cook sent a cross into the box with the unmarked Mark McGuigan inches away from connecting. Shortly after Dingwall fired wide from the edge of the box before Jamie Bain curled past the post for the Loons.
Jim Weir’s side were given an opportunity to kill the game on the hour mark when Hilson was fouled by David Marsh inside the box; the defender booked for his troubles. John Baird stepped up and blasted his penalty past Smith for his first goal since early March.
With 15 minutes remaining Travis nodded over from a corner and from the goal kick Hurst was given a chance at the other end but sent his shot straight at McCallum.
Andy Munro was involved heavily in the latter stages of the match as he saw a header cleared off the line before another header flew past the post.
With six minutes remaining he was shown a straight red card for apparent dissent, which appeared to be very harsh on the former Loon.
The final chance of the afternoon fell to sub Lewis Moore but his low effort was turned round the post by Smith.
Backed by a sizeable support, the Loons left Ochilview with all three points and second place in the table; Raith Rovers failed to regain this on Sunday as they drew with champions Arbroath.
Stenhousemuir are on the road again next week, but when they return home it’ll be against Brechin City, their relegation rivals and only goal difference separates the sides as it stands.