Lewis King hit a dramatic injury-time winner to lift the Clarets back to the top of the U18 Professional Development League’s northern group.
The defender poked home his first goal since joining Burnley from Spennymoor in November to seal a fifth straight league win for Danny Cadamarteri’s in-form side.
Jordan Barnett, another recruit from non-league football earlier this season, had struck twice to open his own Burnley account after the Clarets hit back from a 1-0 deficit at the break.
But the Blues looked like they had secured a point until King’s late intervention.
Lewis King was with National League North side Spennymoor
“It was an excellent game of football and the players showed the necessary character and attitude needed to represent this club, to keep going to the very end and not give up,” said assistant youth coach John Townson.
“They got their deserved reward for that”.
The Clarets had made a bright start as they looked to avenge a 3-2 defeat at Birmingham in October and Marley Blair hit a post before the visitors struck to take a half-time lead.
Burnley made a change at the break with Dylan Meredith coming on and his quick free-kick allowed Barnett to cross for Dan Moss to fire home and make it 1-1.
Jordan Barnett joined the Clarets from Northern Counties East League side Penistone Church
Barnett then notched his first with a fine strike from the edge of the box to give Burnley the lead and after Birmingham had equalised, the winger was on target again with another eye-catching effort to pick out the top corner with 15 minutes to go.
That looked likely to be the winner, but in a thrilling finish Birmingham hit back again to make it 3-3 with a late goal before King had the final word to put the Clarets back on top of the pile.
Burnley: Bruce, Cropper, King, Thomas, Rain, Moss, Kershaw (Layton), Mupariwa (Meredit), Blair, Barnet, Ellison (George). Subs: Allen, Yari.