By Simon Fudge
Last Updated: 01/01/70 1:00am
The home side took the lead on 11 minutes as Igor Demo gave Gladbach the lead but the lead was short lived, as Dortmund levelled a minute later through big Czech striker Jan Koller.
The match remained deadlocked until seven minutes from time when Sladjan Asanin scored the winner for Gladbach.
The win takes the home side three points clear of the drop zone while Dortmund miss the chance to close the gap on the top four with the defeat.
In the other Bundesliga match on Sunday, Wolfsburg came from a goal down to defeat Hannover 2-1 at the VW-Arena.
The visitors took the lead when Daniel Stendel scored on 15 minutes but Fernando Baiano was able to equalise for Wolfsburg on 29 minutes, as both sides went to the break level at 1-1.
The match was decided mid-way through the second half when Martin Petrov netted the winner for the home side, who move to seventh while Hannover stay in the bottom half of the table.
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Click here for an updated Bundesliga table.