Shea Campbell went close for Armagh in the first half
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City claimed their first Carnegie Premier League home win of the season to move up three places to 11th.
Liam Cullen gave Armagh a 26th minute lead when he pounced to score after Chris Keenan spilled a free-kick.
City striker Shea Campbell hit the bar
while Larne's Lewis Hamlin was also denied by the woodwork.
Stephen Hynds slotted past Keenan to make it 2-0 on 83 minutes before Gary Rafferty pulled one back for the visitors in the final minute.
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