The Claret suffered their second defeat of the season in the Youth Alliance as Blackpool came from behind to take the points at Gawthorpe.
Jason Gilchrist fired Burnley ahead direct from a free-kick as he made it three goals in as many games.
But the Clarets' bright start soon evaporated as Blackpool struck twice around the half-hour mark to lead 2-1 at the break.
Burnley keeper Callum Jakovlevs produced an impressive performance but was powerless to stop the Seasiders rounding things off with a third goal 15 minutes from time.
Burnley: Jakovlevs, Holt, Whitmore, Errington (Azam 50), Hill, Lowe, Bianga (Massanka 61), Jackson, Gilchrist, Frost, Nuttall (Daly 61). Subs: Eccles.