The two premiership contenders were evenly matched from the outset, being locked at 9-9 after the opening 10 minutes.
The Lions started to break clear with three straight goals, leading 12-9, but the Blues immediately tied scores with the same run.
A thrilling contest was set up for the final three periods, as Mulwala only led 15-14 at the first interval.
Tongala suddenly gave itself a little cushion early in the second period, leading 20-17 after 19 minutes, which it largely maintained for the remainder of the first half, the Blues up 31-29 at the main break.
After being marginally better than the Lions in the second quarter, Abby Pettifer’s side only improved in the third, which was its best period of the day.
Mulwala had tied scores at 33-33 after 35 minutes before the Blues netted seven of the next nine to establish a five-goal lead heading into the fourth period.
The hosts held their nerve in the final 15 minutes, at one stage extending their lead to eight goals.
Mulwala finished strong, scoring six of the game’s final eight baskets, but it was too little, too late as Tongala claimed a huge win across four hard-fought periods, winning 59-55.
Blues goal attack Chicquita Vick led all scorers with 36, being aided by 22 from goal shooter Natasha Dodos.
Tongala (13-4) remains behind Mulwala on the ladder despite the win.
But the Blues now only trail on percentage in the race for second, which provides the carrot of a grand final qualifier against first in the second week of finals.
The Lions do have a game in hand, while their final two matches are against two sides outside the top six in Deniliquin and Echuca United.
Tongala would need the Rams or Eagles to cause an upset in either match to aid its pursuit.
But Pettifer’s side also needs to take care of business against lowly Finley in its last regular season game, which follows a second bye it will serve in round 19.