India lost by a solitary goal to hosts Bangladesh in the SAFF U19 Women's Championship in Dhaka on Friday.
India had earlier registered comfortable victories over Sri Lanka and Bhutan.
Shamsunnahar's seventh minute strike from the penalty spot made the difference between the two sides.
The match began with both teams going hard from the first whistle as Bangladesh looked to make the most of their physical prowess and pressed the Indian defenders high up the pitch.
The first opportunity of the game went to Bangladesh, who were awarded a penalty in the seventh minute which was converted by Shamsunnahar.
Although, Bangladesh dominated possession after the goal, India got an excellent opportunity to restore parity in the 40th minute when Sumati Kumari passed a ball to Mariyammal, whose left-footer went straight into the hands of Bangladesh goalie Rupna.
At the end of the first 45 minutes, the scoreline read 1-0 in favour of the hosts. India started with more purpose and controlled most of the possession after the cross over.
In the 50th minute, Shilky Devi was brought down by Maria, who committed a tactical foul to avert the danger for Bangladesh.
Another close chance was created by Amishal Baxla in the 55th minute but her effort was saved by Rupna. In the 73rd minute Sumati Kumari tried to chip the ball in after her long run, but it went off target.
Ambrose made his last change of the game in the 84th minute when Lynda Kom replaced Mariyammal. India play Nepal in their last match on Sunday, and a victory in that game will assure them of a place in the final.