A first-half goal from Evan Ferguson wasn't enough for Jason Donohue's side as second-half strikes from Giorgios Louka and substitute Andreas Athanasiou gave the home team the win.
Ferguson took advantage of slack defending to give Ireland the lead, as he dispossessed Konstantinos Veneizelos and ran in on goal where his shot easily beat Theodoros Koutsou.
The Under-15s return to action in early April, with two matches against Czech Republic.
Cyprus: Theodoros Koutsou, Savvas Chrysostomou, Sergio Fenerides, Konstantinos Patichis, Nikolas Lamprou, Konstantinos Patichis (capt), Marios Valiandes, Giorgos Louka, Andreas Savva, Titos Procopiou, Orthodoxos Othodoxou
Republic of Ireland: Jack Ross; Cian Kelly (John Ryan 51), Sean Grehan, Aaron O'Reilly, Craig King (Tommy Fogarty 51); Glory Nzingo, Ben Curtis, John Joe Power (Jamie Mullins 51); Edwin Agbaje, Evan Ferguson (capt), Ciaran O'Sullivan
Referee: Antonis Konstantinides (CYP)