With the clock ticking into added time, James Scott's team were leading 1-0 but two late finishes from Finland swung the contest back in their favour and they took the three points.
Ireland fought back to draw 1-1 with Slovakia in their previous game and they started well here with Michaela Lawrence winning a free-kick that Kate Thompson struck wide.
Lia O’Leary made a fantastic run in the 10th minute, gliding past two Finnish players before dragging her shot just wide.
Finland started to up their game and in the 15th minute had a very close chance. It was a wake-up call for the Girls in Green.
O’Leary again threatened with a fantastic chance in the 20th minute. Goalkeeper Summer Lawless played a quick long ball up the field and O’Leary drifted pass the Finnish defenders, her shot was saved by the Finnish goalkeeper. Again in the 25th minute O’Leary had another great chance, but was saved by Finnish goalkeeper Ellan Arpiainen.
The game stayed extremely even between the two teams, Lawless made a fantastic save in the 27th minute, keeping Ireland in the game.
Thompson had another shot from goal far out, the Finnish goalkeeper touched it onto the crossbar, but it just didn’t bounce the right way for Jodie Loughrey following in.
Right before halftime, Jodie Loughrey’s shot deflected out to O’Leary who just hit the ball over the crossbar. A eventful first half for Ireland, but the score line still 0-0.
Finally in the 58th minute Ireland got the opener. Katie McCarn intercepted a pass out the of the back from the Finnish goalkeeper, crossed the ball in, and there was captain Abbie Larkin to give Ireland to lead.
Ireland started to dominate the game from this point, chances kept coming with more chances for O’Leary and Orlaith O’Mahony - the latter having a great chance in the 90th minute, just putting over bar.
Finland got a good spell of possession late on in the game and got the equaliser through substitute Elli Makipelkola in extra time.
An extremely tense last couple of minutes for both sides and after a great Finnish free kick, an unfortunate touch from Thompson put it into the back of the net.
Extremenly unfortunate for the Girls in Green, but they can be proud of their performance in a very intense game.
Ireland play Iceland in their final Round 2 game on Tuesday in Tallaght Stadium.
Republic of Ireland: Lawless; Russell, Thompson, Mackin, O’Hanlon; O’Mahony, Lawrence (Kelly 55), Jodie Loughrey (Dolan 55); Keri Loughrey (McCarn 45), Abbie Larkin (C), Lia O’Leary (Ralph 79).
Finland: Arpiainen; Siivonen, Arimo, Angeria; Kalske, Schalin, Yia-Mononen, Walta; Halttunen, Kiviranta, Seiro.
Referee: Zulema Gonzalez Gonzalez (Spain).