A dramatic stoppage-time winner from Ollie Palmer saw Luton grab a crucial home win over fellow play-off hopefuls Blackpool.
It had looked like the hosts would be held to yet another draw, before the towering striker tapped home from two yards out after keeper Dean Lyness couldn't hold Luke Gambin's shot.
In the first half, Isaac Vassell's early effort deflected behind for the hosts, while Danny Hylton's volley was easy for Lyness.
The visiting stopper was then in action again, denying Hylton on 21 minutes, while Alan Sheehan wasn't too far away from the bottom corner.
Blackpool came close on 26 minutes, former Luton striker Mark Cullen glancing Colin Daniel's excellent cross wide, before Vassell forced Lyness into another stop.
Hatters keeper Matt Macey made a superb save to tip Bright Osayi-Samuel's curler over, while he also claimed Neil Danns' effort.
After the break, Macey excelled again, tipping Kyle Vassell's overhead volley on to the bar, while Lyness denied Pelly-Ruddock's angled effort at the other end before Palmer won it at the death.