The Dragons let a 12-point lead slip as they fell to a narrow Challenge Cup defeat against Zebre in Italy.
Dai Flanagan's side could have qualified for the knockout stages with a bonus point win in Parma, so long as other results in Pool 1 had gone their way, but defeat to the Italian side means they now head into next week's final pool clash with the Sharks with their fate still in the balance.
Having started the day third in the six-team Pool 1, they have now been leapfrogged by Zebre ahead of next week's game.
The Dragons had built an early lead out in Italy through the boot of Wales full-back Cai Evans and his four penalties, but Zebre did manage to hit back through an unconverted Simone Gesi try and a lone penalty from Giovanni Montemauri.
That wasn't enough for the home side to wrestle the lead at the break from the Rodney Parade outfit.
However, Iacopo Bianchi's try from a driving maul five minutes after the restart put the Italians ahead, before Gesi's second extended their lead.
Jared Rosser crossed just before the hour mark, latching onto Dane Blacker's pinpoint kick to score, to bring the Dragons within three points and give them hope.
However, that was the last of the scoring, with Zebre holding onto a victory that pushes them ahead of the Dragons in Pool 1.