A Shane Smeltz goal in the 22nd minute was enough to beat the world's 15th ranked team, which includes many players from the top ranked clubs in Europe.
The All Whites spent most of the second half defending but showed enough steel to hold out Serbia and gain some confident ahead of the World Cup.
Serbia dominated the first 20 minutes with some neat interpassing, but the closest they came to scoring was with a free kick which Paston was forced to punch away and it was somewhat against the run of play that the All Whites went ahead.
Rory Fallon beat Manchester United defender Nemanja Vidic to knocked on a long ball from Winston Reid to Smeltz, who turned his marker and beat Vladimir Stojkovic in the Serbian goal.
It was nearly 2-0 just two later, Stojkovic being forced into a diving save from a left footed strike by Fallon.
Serbia controlled most of the match from that point and went close to scoring when Neven Subotic missed an open header from a free kick which was inadvertently flicked to him from Jeremy Christie.
Serbia came out strongly in the second half as the All Whites seemed intent on keeping as many players back as possible, and the Serbs went close in the 47th minute when Simon Elliott blocked a strike from Marko Pantelic.
The All Whites had two useful chances in the 57th and 60th minute, as Fallon first headed a corner over, and then Reid couldn't catch up with another Fallon flick-on.
Paston was in action shortly afterwards, being forced into a close save from Nikola Zigic as the big Valencia forward was being pressured by Reid.
All Whites substitute Jeremy Brockie just missed the left hand post after being put through by Fallon and Smeltz, but the last 10 minutes was mainly spent in defence as Serbia pressed.
Zigic again went close near the finish with a header, but the All Whites held on to score an important confidence-building victory ahead of the World Cup in South Africa.
The latter minutes of the match were disrupted by Serbian supporters trying to get onto the ground. Star Manchester United defender Nemanja Vidic eventually got onto a public address microphone to ask his supporters to calm down.
