The Old Firm Colt teams were facing each other for a fourth time this season and in another tight contest, both sides couldn’t be seprated after 90 minutes in a 2-2 draw at the Rangers Training Centre.
Ben Wylie missed the decisive spot-kick, ensuring Rangers will now face either Clyde or Airdrieonians in the final.
Defender Adam Devine told Rangers TV: “Everybody is absolutely buzzing. I thought we were the better team once again.
“We had to dig in after going behind twice in the game but we showed real character and deserved to win.
“We heard before the game that they would have a few first-team players starting but we have full trust and belief in ourselves that we can win any game.
“Sometimes in a semi-final of a competition, things can go against you but when you’ve got a confident goalkeeper behind you then you can always depend on him.
“Lewis (Budinauckas) has got us through to the final, so he deserves a lot of credit. It was nerve-wracking but this is a good chance for us to win silverware and we’re going to give it our all.”
Celtic B manager Tommy McIntyre named Christopher Jullien, Mikey Johnston and Karamoko Dembele in his starting XI, while Rangers were able to call on Leon King and Alex Lowry, who were both on the bench during Sunday’s Scottish Cup semi-final victory.
The visitors broke the deadlock with a well-worked move after 12 minutes. Dembele linked up well with January signing Johnny Kenny and the former Sligo Rovers striker squared the ball across the face of goal for Johnston to tap home.
Celtic continued to press forward in search of a second goal and Wylie fizzed an effort narrowly wide before goalkeeper Tobi Oluwayemi saved Charlie McCann’s strike from the edge of the box.
Rangers were back on level terms after 32 minutes when Robbie Fraser drove down the left-hand side and managed to pick out Ross McCausland 20 yards from goal.
The 18-year-old winger displayed excellent technique to volley the ball first time into the bottom corner of the net.
Celtic reclaimed the lead early in the second half when the skilful Dembele recieved the ball and evaded several challenges before finding Ben Summers in the penalty area.
The attacking midfielder showed good composure to control and poke the ball beyond Budinauckas.
Hoops fans will have been concerned when £7million centre-back Jullien landed awkwardly following an aerial duel but the Frenchman, who recently made his long-awaited return to action, was able to shake off the knock.
Rangers never-say-die attitude kicked in once more with 13 minutes left to play as McCann expertly lifted the ball over the Celtic defence and Cole McKinnon stroked home to force penalties.
Summers, King, Johnston, McKinnon, Brooks and Lowry all converted their spot kicks impressively.
Rocco Vata then found the target to make it 4-3 but that was quickly cancelled out by Robbie Fraser who also went down the middle.
Wylie had Celtic’s fifth penalty saved by Budinauckas before the eye-catching McCann slotted home the winner.
Frustration spilled over when Celtic keeper Oluwayemi was held back by several players after squaring up to Murray Miller.
Celtic B: Oluwayemi, Dede (Corr; 45), Paterson, Otoo, Jullien, Lawal (Letsosa; 84), Karamoko (Vata; 90), Carse (Brooks; 62), Kenny (Summers; 62), Wylie, Johnston
Unused: Morrison (GK), Dawson
Rangers B: Budinauckas, Devine, Fraser, King, McClelland, Miller, Lowry, McKinnon, Weston (Ure; 65), McCann, McCausland
Unused: Hogarth (GK), Allen, Yfeko, Lindsay, Ritchie-Hosler, Lyall
Referee: Ryan Kennedy