The last-placed Dragons scored four tries to the Knights' three on Friday night, with two Newcastle penalty goals and Valentine Holmes' wayward boot separating the sides.
Saints had one last chance to snatch an upset victory when five-eighth Daniel Atkinson lofted a bomb into the red zone in the final minute of play.
Excellent to that point, halves partner Kyle Flanagan chased through, but the ball slipped from his grasp as he tried to regather it and score the match-winner.
The Dragons fell to a 13th loss of the year and will finish the weekend at least two wins behind second-last on the ladder.
Holmes will rue having missed a very straightforward conversion attempt with 20 minutes to play that could have eventually sent the game to extra time.
He kicked two from four attempts for the night, while Sandon Smith managed five from five for the Knights.
"There were some opportunities for us to win the game and we didn't nail them," interim coach Dean Young said.
"Unfortunately, we put all that effort in, and we don't get the result."
The result nevertheless reiterates the Dragons' improvements under Young.
Only six weeks ago, Newcastle raced out to a 32-0 halftime lead and inflicted a 44-10 defeat on the Dragons in Young's second game at the helm.
Early signs were that history would repeat itself after the Dragons were forced to reshuffle their backline with Moses Suli (hip) injured in the warm-up.
Replacing the rested Kalyn Ponga, fullback Fletcher Sharpe feasted on the makeshift edges, crossing twice in the opening 10 minutes.
But unlike in the sides' last meeting, the Dragons would not roll over.
"I can see the improvement," Young said.
"They scored how many points in the first half against us five (sic) weeks ago and it could've went that way, but we've changed."
Saints are clearly attacking with far greater confidence than earlier in the year, and still managed to complete at 92 per cent.
So often criticised for their lack of firepower in the halves, the Dragons' four tries all came directly after kicks from either Atkinson or Flanagan.
The first three of those were from kicks early in the tackle count, with the Dragons also unafraid to throw the ball around in second-phase play.
Second-rower Luciano Leilua gave Saints a lift coming on and helped put Clint Gutherson into a space ahead of Setu Tu's try.
Mature-age rookie Tu continued an encouraging first campaign on the right wing, tapping the ball back for Dylan Egan's try.
The Dragons' defensive resolve has also found new levels.
Notably, hooker Damien Cook pulled his opposite man Phoenix Crossland down centimetres short of the tryline in the final minute before halftime.
Ultimately, the Knights' fast start was enough, with Smith's 54th-minute try their only four-pointer after the 10-minute mark.
"The Dragons are playing decent footy now and competing hard. We'll take the win," said Newcastle coach Justin Holbrook.
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