Celtic went down to a 2-1 defeat to Newcastle United in the opening match in the Whitby Town Challenge Cup.
Although it was billed as an u23 competition Tommy McIntyre basically had an u-19 squad with the exception of Aiden Nesbitt.
Celtic had by far the better of the chances and possession but went down to a double from  Ivan Toney early in the second half after Joe Thomson had put the hoops into a first half lead.
There were early chances at each end in the early stages before the game settled down with Thomson opening the scoring in the 37th minute.
The midfielder, who had loan spells at Dumbarton and Queen of the South last season, got on the end of a great passing move to shoot low past Paul Woolston in the Newcastle goal to give the hoops a deserved lead
A head knock for Lewis Bell saw him replaced at half time by Stephen Welsh who went into the unfamiliar role of left back.
Celtic seemed to be in control but were rocked by two goals within 90 seconds with a double from Toney in the 55th and 56th minutes.
That double blow kick started Celtic into action with the hoops coming close with a couple of chances before Kerr McInroy hit the bar with a 68th minute shot.
Celtic kept going until the final whistle but were unable to get the equaliser that their play deserved.
Tomorrow Whitby Town take on AZ Alkmaar with the losers playing Celtic in Saturday’s third place play off.
On Tuesday the young hoops will be closer to home taking on Albion Rovers at Cliftonhill in the Jock Stein trophy ahead of the Irn Bru Cup tie away to Annan Athletic on August 8.
CELTIC: Doohan; Wardrop, Deas, Duffy, Bell (Welsh 46); McInroy, Thomson; Hendry, Henderson, Nesbitt; Crossan
SUBS: Mullen, Potter, Campbell, Diver, Watson, McLaughlin