It was a cruel switch in fortune for the Celts who had pulled off a shock victory of their own at Torquay on Saturday.
* Click here for a picture slideshow of match action from the game.Ex-Leeds and Huddersfield defender Jackson, wearing the captain's arm band in the absence through injury of Amjad Iqbal, was carried off after falling awkwardly in the 41st minute and being substituted by Ryan Serrant.
It just wasn't Farsley's night from the moment winger Andy Watson injured his back during the warm-up.
Watson had been named in the starting line-up but had to occupy a place
on the bench, Roy Stamer belatedly stepping into the side.
Short
With Craig Bentham back at Bradford City on completion of his loan spell and Dominic Krief missing with a leg strain, the Celts are left short at a crucial stage of the season.
Manager John Deacey said: "We just didn't perform. It's not good enough if we want to get out of this relegation battle.
"We have five matches left to sort it out and we will have to do that. We didn't pass well and failed to take our chances.
"It was a difficult night but the lads battled and created two good
chances in injury time.
"In my opinion we should have scored from them both but that's life.
"After picking up so many injuries I need to have a long hard think before Saturday's game at Oxford but we may have Amjad Iqbal back for that."
Droylsden took a surprise 12th minute lead when slack marking allowed Kevin Lynch to score with a downward header from Sean Newton's corner on the left.
Farsley needd a quick response and it came just four minutes later when Damien Reeves raced on to a ball played over the defence, chested it down and beat Paul Phillips with a quickly taken shot to the keeper's right.
However, Droylsden refused to buckle as Celtic took time to adapt to their team changes.
Home central defender Georges Santos was penalised in a dangerous position and he had to make a goal-line clearance from Newton's thunderous free-kick as Celtic hung on.
Jackson's departure caused more disruption, Serrant leaving the bench to take the left back spot and Scott McNiven moving into central defence.
Roy Stamer had a shot brilliantly tipped over by Droylsden keeper Paul Phillips and when Reeves' low shot was parried, David McNiven miscued from the rebound.
Terry Fearns headed in Ashley Burbeary's corner 85th minute corner as Celtic conceded from another set-piece but Simeon Bambrook should have equalised with an injury-time header.
Celts return to action on Saturday with a tough trip south to Oxford United.
FARSLEY CELTIC: Aspden; Downes, Jackson (Serrant 41), (Heath 88), Santos, S. McNiven; Stamer (Tuck 66), Knowles, Bambrook, Prendergast; D. McNiven, Reeves. Subs not used: Watson, Torpey.
DROYLSDEN: Phillips; Roche (Murphy 76), Munroe, Halford, Newton; Lynch, Macklin, Burbeary; McGuire (Talbot 69), Fearns (Strong 90), Denham. Subs not used: Dugdale, Ellis.
REFEREE: R.J West (Beverley).
ATTENDANCE: 480.
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