Gate bowed out of the FA Cup in the first qualifying round as their visitors from Sheffield scored three times in the final six minutes.
The hosts, who placed most of the game with 10 men after Mike Hall’s dismissal, had won two preliminary round contests against Maltby Main and West Didsbury & Chorlton and victory on Saturday would have meant their best run in the tournament for 12 years.
Town faced their Northern Counties East premier division visitors without influential midfielder Joe Noblet, the only change from the team which had lost to Darwen in midweek.
The visitors broke dangerously after 11 minutes but keeper Ben Fletcher did well to stretch and tip the shot over the crossbar.
The visiting keeper was forced into an equally good save three minutes later, tipping over Ben Seear’s header from a free-kick.
Seear wouldn’t have to wait long for another chance, hading Mike Hall’s cross into the bottom corner for the opening goal on 25 minutes.
However, five minutes later midfielder Hall was shown a straight red card, adjudged to have lashed out after being fouled.
Handsworth made their man advantage count just two minutes later, when Danny Holland knocked the ball past Fletcher and it remained 1-1 at half-time.
Handsworth took the lead within a minute of the restart, Holland tapping in his second after a mix-up in the Gate defence.
Gate had a let-off a moment later, when Handsworth were pulled back for handball, but the hosts were level on 56 minutes.
Ben Seear was bundled over in the box and twin Ric calmly slotted the penalty to the keeper’s right.
As the teams then cancelled each other out for almost half an hour, a replay looked likely until a Handsworth free-kick rebounded off the wall. The ball was crossed back in for Gaz Griffiths to head past Fletcher at the back post.
Another header beat Fletcher two minutes later, Kieran Wells converting a corner.
And as the clock ticked round to 90 minutes Handsworth added their fifth.
Gate had left themselves short at the back as they pushed up forgoals and . Jon Froggatt sealed it with a close-range finish.
This was an improved Gate performance after the Darwen defeat and they play their third home game in eight days against Nelson tomorrow (7.45pm)
Gate: Fletcher, Richards, Carroll, Penswick, Higham, Hall, Mckendrick, B.Seear, Thornber, Tanser, R.Seear. Subs: Gibson, Buchan, Riley, Dawson.