Last season's beaten Capital One Cup finalists Bradford City fell at the first hurdle on Tuesday evening when they were narrowly beaten by local rivals Huddersfield Town.
James Vaughan bagged a brace with a goal either side of half time to set the hosts on their way. Despite Nahki Wells' excellent late strike, The Bantams, who were backed by almost 4,000 travelling supporters, couldn't quite find a last ditch equaliser and exited this year's competition.
Huddersfield started the game on the front foot and last season's leading scorer James Vaughan showed his ability early on when he produced an acrobatic overhead kick from Jack Hunt's cross that went a few yards wide of the target.
The Bantams were gradually coming into the game as time ticked on but Huddersfield were still creating a lot of chances and the next one came through former Leeds United midfielder Adam Clayton.
A rare first half chance for the visitors came after Town gave away possession deep into their own territory and Alan Connell produced a brilliant low cross which Smithies flapped at before Vaughan almost turned the ball into his own goal.
Close season recruit from Watford Jonathan Hogg came a matter of inches from breaking the deadlock when he fizzed a low 25 yard drive wide of the target after being teed up invitingly. Clayton was denied by Stephen Darby merely a minute later, who was on hand to hook his strike off the line after he had wriggled past several City players inside the area.
The last action of the opening period proved key as Vaughan broke the deadlock. The former Everton forward picked up the ball 20 yards out before launching a powerful shot towards goal that beat the outstretched arms of McLaughlin and nestled into the bottom corner.
Having barely been on the pitch 10 minutes, half time substitute Adam Hammill was on hand to assist Vaughan's second when his pin-point cross was headed home to give The Terriers a two goal cushion in the derby.
Phil Parkinson's men almost responded in perfect fashion when they went up the other end and created a genuine goal scoring opportunity. Alan Connell linked up well with Garry Thompson before the latter saw a firm shot foiled by Smithies after he'd got in behind the defensive line.
Nahki Wells, James Hanson and James Meredith were introduced as part of a triple substitution to try and impact the game substantially with time running out and it was Wells who scored a late goal for the visitors.
Wells sparked the game to life in the last minute of the 90. Picking up a long ball forward the Bermudian made it 2 goals in as many games when he fired an emphatic 20 yard strike into the bottom corner leaving Smithies helpless.
City pushed for the equaliser causing panic late on amongst Huddersfield's defensive ranks but time was very much their enemy having left their attempted recovery act far too late and it was the hosts who held on for a narrow victory.