This is the latest in a string of All-Ireland semi-final disappointments for Slaughtneil, who have been the dominant force in Ulster over the past decade.
Their five semi-final reverses included some near-misses, notably last year’s one-point defeat by Sarsfields after extra-time.
But they did not come quite as close on Sunday as Loughrea pulled clear during a dominant second-half display to book their place in the showpiece game.
Despite not having played a competitive game since beating St Thomas’ to retain the Galway title on 1 November, Loughrea appeared sharper from the outset as they raced into a 0-3 to 0-0 lead through Caimin Killeen and Tiernan Killeen’s point from play and a Martin McManus free.
But after Conor McAllister nailed a long-range score, Slaughtneil settled into the game and trailed 0-6 to 0-5 after 15 minutes thanks to four Shea Cassidy points.
Anthony Burns spurned the first goal chance of the game when he blasted wide, and while Tiernan Killeen’s free stretched Loughrea’s advantage to two points, two Shea Cassidy frees brought Slaughtneil back level for the first time.
Jamie Ryan and Chrissy McKaigue – operating in an advanced role for Slaughtneil – exchanges scores before Burns atoned for his earlier miss when he blasted high into Oisin O’Doherty’s net after a long ball forward caused confusion in the Derry side’s defence.
Caimin Killeen scored a fine point from play for Loughrea, but Shea Cassidy and Ruairi O Mianain’s efforts ensured Slaughtneil only trailed by two at the interval.
More to follow.