Captain John Rankin got the Doonhamers off to the perfect start with a seventh-minute opener from the edge of the area.
Derek Lyle then turned in from close range following a corner.
Jean-Yves Mvoto gave Rovers hope with a 61st-minute header but John Hughes' side could not find a way back.
Home goalkeeper Lee Robinson made a couple of good saves to deny Rovers midfielder Chris Johnston, before Ryan Hardie spurned the chance to level when his header cleared the crossbar.
Match ends, Queen of the South 2, Raith Rovers 1.
Second Half ends, Queen of the South 2, Raith Rovers 1.
Attempt missed. John Rankin (Queen of the South) left footed shot from outside the box is high and wide to the left from a direct free kick.
Jim Atkinson (Queen of the South) wins a free kick in the defensive half.
Foul by Iain Davidson (Raith Rovers).
Substitution, Queen of the South. Ross Fergusson replaces Stephen Dobbie.
Iain Davidson (Raith Rovers) is shown the yellow card for a bad foul.
Foul by Iain Davidson (Raith Rovers).
Kyle Jacobs (Queen of the South) wins a free kick in the defensive half.
Foul by Jason Thomson (Raith Rovers).
Lyndon Dykes (Queen of the South) wins a free kick on the right wing.
Attempt missed. Declan McManus (Raith Rovers) right footed shot from outside the box is just a bit too high.
Attempt saved. Darren Brownlie (Queen of the South) header from the centre of the box is saved in the centre of the goal.
Corner,  Queen of the South. Conceded by Declan McManus.
Substitution, Queen of the South. Daniel Carmichael replaces Dom Thomas.
Attempt missed. Ryan Hardie (Raith Rovers) header from the centre of the box is just a bit too high.
Attempt saved. Chris Johnston (Raith Rovers) right footed shot from the centre of the box is saved in the centre of the goal.
Attempt saved. Declan McManus (Raith Rovers) right footed shot from outside the box is saved in the top centre of the goal.
Corner,  Queen of the South. Conceded by Declan McManus.
Attempt blocked. Dom Thomas (Queen of the South) left footed shot from outside the box is blocked.
Foul by Ross Callachan (Raith Rovers).
Kyle Jacobs (Queen of the South) wins a free kick in the defensive half.
Foul by Craig Barr (Raith Rovers).
Lyndon Dykes (Queen of the South) wins a free kick in the attacking half.
Iain Davidson (Raith Rovers) wins a free kick in the attacking half.
Foul by Stephen Dobbie (Queen of the South).
Substitution, Raith Rovers. Chris Johnston replaces Ryan Stevenson.
Foul by John Rankin (Queen of the South).
Mark Stewart (Raith Rovers) wins a free kick in the attacking half.
Attempt saved. Dom Thomas (Queen of the South) left footed shot from the left side of the box is saved in the centre of the goal.
Corner,  Queen of the South. Conceded by Jean-Yves Mvoto.
Substitution, Queen of the South. Lyndon Dykes replaces Derek Lyle.
Corner,  Raith Rovers. Conceded by Darren Brownlie.
Foul by Dom Thomas (Queen of the South).
Declan McManus (Raith Rovers) wins a free kick in the defensive half.
Foul by Stephen Dobbie (Queen of the South).
Kyle Benedictus (Raith Rovers) wins a free kick in the attacking half.
Substitution, Raith Rovers. Declan McManus replaces Jordan Thompson.
Substitution, Raith Rovers. Ryan Hardie replaces Bobby Barr.
Corner,  Queen of the South. Conceded by Craig Barr.
Queen of the South kept their slim play-off hopes alive with a win against Raith Rovers, who remain without a win in 16 games in all competitions.