Mariano Rivera pitched out of a bases-loaded jam in the bottom of the ninth and the teams went into extras.
Jason Giambi (5 RBIs) hit his second home run of the night, and 36th of the season, off Craig Hansen to open the 10th, Jorge Posada followed with a two-run homer, and the Bombers made it four straight wins over the Sox with an 8-5 triumph.
With 39 games to play, the Sox fell 5 1/2 games behind the Yankees in the American League East while remaining 4 games behind the White Sox in the wild-card race.
In his last 10 appearances dating to July 29, Hansen has allowed 13 earned runs in 10 1/3 innings with an ERA of 11.32.
``Stunned," said Boston starter Curt Schilling, who left with a 5-3 lead and pitched seven strong innings despite a 57-minute rain delay.
``Rough night. You've been outpitched, outhit, and outplayed four games in a row. We'll just to have to strap it on one more time tomorrow and win.
``We put ourselves in this hole. What are our choices. We've still got to play 'em, try to win 'em all.
``This is tough. We've been outplayed four straight games. We're shorthanded, but we've still got enough talent to win. We just haven't played consistently in any facet of the game."
What undoubtedly will draw the most scrutiny among Sox followers was manager Terry Francona's decision not to start the eighth with Papelbon, who had not pitched in the series and had last appeared Wednesday against the Tigers, when he threw just six pitches to set down Detroit in order for his 32d save.
Instead, Francona did not summon Papelbon until the bases were loaded with Bombers in the eighth. Johnny Damon, facing Mike Timlin, singled off Mark Loretta's glove, and Jeter was hit by a pitch. In came Javier Lopez, the lefthander newly summoned from Pawtucket, to face Bobby Abreu. Abreu drew a full-count walk.
Only then did Francona go to Papelbon to face Giambi, who lined out to the track in right to bring home Damon to make it 5-4. Papelbon walked Alex Rodriguez on a full count, then struck out Robinson Cano and Posada.