A blistering start to the second-half saw the Premiership strugglers break away from their Welsh rivals and claim successive European Rugby Champions Cup triumph.
The Dragons went into half-time with their tails up after Matthew Pewtner, Taulupe Faletau and Ashley Smith all dotted down for tries.
But Nick Clegg’s boot kept his side in touch and they pounced on sloppy defending from the hosts. Mark Wilson crashed through to add rot Lee Smith’s first-half score and Will Witty was the benefactor of a comedy of errors between Matthew Pewtner and Hallam Amos. The Newport region rallied but could not break through and had to settle for a losing bonus-point.
The Falcons got off to flying start after seven minutes through the boot of Rory Clegg. The Men of Gwent were guilty of handling at a ruck after some heavy early pressure from the Aviva Premiership side and Clegg converted to put his side in-front.
But the Dragons clicked into gear as they did in their round one triumph at Stade Francais. Richie Rees sent Faletau and Lewis Evans on thundering crashes before he arced through the Falcons defence. He spotted Pewtner in space and the wing dived in at the corner.
The Welsh side kept the pressure on and they were rewarded with a penalty which Angsu O’Brien converted to make it 8-3. But the home fans were not smiling for long as they saw a moment of brilliance from hooker Rob Hawkins set up a try in reply for Newcastle.
The front-row gave neat flick pass to Smith, who kicked ahead to Hallam Amos, but his clearance was charged down and Smith raced on to dot down in-goal. Clegg nailed the conversion to put his side back in-front but Smith turned from hero to villain moments later.
He body checked Aled Brew after he had kicked ahead to halt a sweeping move and the Dragons chose to to go to the corner. They rumbled towards the line and Faletau was on hand to touch down at the back of the maul.
The hosts had their collective tail up heading into the break and there was just enough time for Ashley Smith to finish off a cross-field move to take the score at half-time to 20-13.
But the Falcons came flying out of the blocks and claimed two early tries. First Wilson broke clean through to cross before Witty pounced on a comedy of errors from the home back-three to put his side 27-20 up.
Prydie clawed his side back to within one point but Smith’s long-range penalty was enough for Dean Richard’s men to take control of Pool Three.