The Highlanders have slumped to their second straight loss after going down 27-22 to the Chiefs in Hamilton.
The visitors could not retain two of their own lineout throws in the last five minutes of the match, which saw them blow their chance to clinch a late win.
Once the Chiefs had possession in the late stages of the match they ran down the clock to seal their victory.
The result gave All Black flanker Sam Cane a victory in his 100th Super Rugby match, but denied Highlander Ash Dixon victory in his 50th match.
The Highlanders were handed a big blow early in the match when Lima Sopoaga limped off the field with just six minutes gone.
After the home side went up 3-0 early in the game, some Rob Thompson magic put the Highlanders in front.
He chip kicked across and Waisake Naholo scored in the corner.
Solomon Alaimalo hit back for the home side later in the second half.
That sent the teams to the shed with the Chiefs in front 13-7.
The second half of the match was an intense, see-sawing battle.
Nathan Harris scored the first second half try to extend the Chiefs' lead.
Tevita Lee helped the visitors claw back the home side’s advantage with a wide out try.
After a penalty Sio Tomkinson put the Highlanders in front 22-20, midway through the second half.
That lead would be one the Highlanders failed to maintain to win the match.
Chiefs winger Sean Wainui put his side back in front in the final minutes of the match and Damian McKenzie nailed a tough conversion.
The Highlanders then squandered any opportunities they had to hit back in the final minutes of the match.
The Highlanders have a bye next week before playing the Brumbies in Dunedin on April 14.
Chiefs 27 - 22 Highlanders
CHIEFS
Alaimalo, Harris, Wainui tries.
McKenzie 3 conv.
McKenzie 2 pen.
HIGHLANDERS
Naholo, Lee, Tomkinson tries
F Smith 2 conv
F Smith pen
Halftime
Chiefs 20 Highlanders 12