Ian Ryan's side lost out in extra time away to Kerry.
Athlone Town have been knocked out of the FAI Cup in the second round after a late defeat to Kerry FC over the weekend.
Ian Ryan's side looked to have secured victory as Jason Foralin Oyenuga's 55th minute strike saw Town lead 1-0 in stoppage time.
However, Joe Adams scored a 96th minute equaliser and forced extra time, before Kennedy Amechi netted just a minute into extra time to seal the win for the Munster side.
The midlands side are back in action this evening in the Leinster Senior Cup quarter final against St Mochtas.
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