Jim Crawford’s side produced an impressive attacking display and led 2-0 midway thanks to goals in either half from Rian O’Sullivan and Thomas Byrne. The Irish had drawn 0-0 with the Netherlands at the same venue on Friday.
Anthony Scully was denied an opener in the 22nd minute with a thumping strike from 25 yards out that keeper Niklas Thiede did well to push around an upright.
Scully attempted to chip the keeper from the halfway line in the 34th minute and was unlucky when his effort drifted narrowly wide of the open goal.
Ireland had produced a dominant first half display and were rewarded in first half injury time when Kian Flanagan did brilliantly on the left flank to set up O’Sullivan for a curled effort that beat the keeper.
After the break the Irish continued to push and Thomas Byrne made it 2-0 after racing onto a slipped pass by Flanagan before slotting past the keeper in the 64th minute.
Six minutes later Aaron O’Driscoll headed wide from a right wing cross by Scully then Stephen Mallon had a chipped effort saved as Ireland looked to extend their lead.
Germany pulled one back in the 74th minute when Timothy Tillman cut in from the left and fired across goal to score.
The Germans equalised through a controversial penalty in the 85th minute after a goal-mouth scramble saw O’Driscoll land on the ball and replays failed to show what offence the Irish defender was supposed to have made. Manuel Wintzheimer converted the spot-kick.
Byrne was desperately unlucky not to increase Ireland’s lead in the 87th minute when he was sent down the right by Canice Carroil and beat a defender before seeing his strike from a tight angle parried by the keeper.
It was heartbreak for Ireland as Gabriel Kyeremateng looped home a header in the 90th minute from a German corner and gave his side the spoils.
“It was disappointing for the players that we didn’t get something from the game as the performance was exceptional. We were very good defensively against the Netherlands on Friday and we obviously had tired bodies at the end of this game,” said Crawford.
“We set some of our improvement goals from Friday’s game as being better going forward and I felt we did just that. We created numerous chances against a top quality side in Germany and some of our attacking play was very good.
“The manner of the conceding of the goals late on was disappointing. The penalty was a controversial decision but we were disappointed to concede from a set-piece late on. That said we’d outplayed Germany for most of the game and could well have gone 3-0 up.
“Overall this has been an excellent couple of days. The players and staff have put in a huge amount of work and we’ve learned a lot. We’ve played two top class opponents and the players will have benefited from this experience.”
REPUBLIC OF IRELAND: Edward McGinty, Canice Carroll, Ryan Nolan, Aaron O’Driscoll, Corrie Ndaba, Dan McKenna, Jack Clarke, Kian Flanagan, Anthony Scully, Aidan Keena, Rian O’Sullivan. Subs: Stephen Mallon for Ndaba 58 mins; Thomas Byrne for Keena 58; Dara O’Shea for Nolan 68; Thomas O’Connor for Flanagan 68.