Reading got a just reward for their hard work and pressure from both of their pacy strikers Nicky Forster and Tony Rougier.
A first half full of endeavour and chances for both strikers went unrewarded with Forster unlucky not to open the scoring in the 17th minute when Rougier crossed only for Forster's shot to be cleared off the line by Moses.
Town had a few half chances through Chris Hay and Danny Schofield but their main threat, Leon Knight, was being well marshalled and double marked at times.
Knight was a slippery forward when he wasn't under close attention and beat 3 defenders to cross for Andy Booth in the second half only to see Booth head wide.
The second half was very challenging for Town and Reading took a deserved lead on 55 minutes when Nicky Forster latched onto a poor flicked header from Andy Booth, who was back defending, and beat the offside trap to neatly loft the ball past the stranded Martyn Margetson.
It was a setback but the game might have been over just a few minutes later when Forster went past two Town defenders and shaped to go past Gareth Evans in the area only to have the left back trip him with his left leg.
It looked like a certain penalty but the referee opted to book Forster for diving!
With the scores remaining 1-0 to the visitors, this was Town's chance to go on and grab the equaliser but, despite the introduction of Clyde Wijnhard, for the last 25 minutes, and a late run-out for Craig Armstrong, Town never got their game going and poor passing and communication blighted the last few minutes for the Terriers.
Leon Knight had an 89th minute purple patch and went round 5 defenders to get a right footed shot in but it was smothered away.
Andy Booth spurned the chance to level the scores deep into injury time when he received a long pass when clean through but he miscontrolled with the ball at his mercy and the game was lost seconds later.
Read Mel Booth's full report on Monday and have your say using the email form on the right or the Message Board below.
Town (4-4-2): Margetson, Heary, Gray, Moses, Evans, Hay, Irons (Armstrong 80), Holland (Wijnhard 66), Schofield, Knight, Booth
Subs not used: Macari, Clarke, P. Senior
Reading (4-4-2): Hahnemann, Gamble, Rougier (Henderson 88), Williams, Forster, Hughes, Igoe (Jones 82), Parkinson, Mackie, Shorey, Salako
Subs not used: Robinson, Cureton, Ashdown
Scorer: Forster 55
Referee: Eddie Wolstenholme (Blackburn)
Attendance: 10,775 (1,001 Away)
Match points follow on subsequent pages.
94 mins: A last minute chace for Andy Booth was spurned as he miscontrolled the ball with the goal at his mercy!
93 mins: Reading were in control as the Terriers completely lost their way.
90 mins: Town were given 4 minutes of injury time in which to preserve their unbeaten league record.
87 mins: Town were making heavy weather of grabbing an equaliser - their unbeaten league run was about to come to an end and they didn't seem likely to get it. Reading were playing for time with tactical substitutions.
80 mins: Schofield had Hahnemann scrambling with a downward header supplied by Clyde Wijnhard. Kenny Irons was replaced by Craig Armstrong as Town pushed on with fresh legs to get the equaliser.
78 mins: Forster went round Gray and forced a save out of Margetson. Town were getting mixed up in attack as Wijnhard, Booth and Knight got in each other's way.
66 mins: Clyde Wijnhard was on for Chris Holland as Town went for the equaliser. John Salako had earlier crossed for Forster and Rougier - Forster struck the ball over the bar.
64 mins: Parkinson cleared the ball as Town were still shell-shocked from Forster's earlier goal and the penalty call.
60 mins: Nicky Forster got between two Town players and moved round Gareth Evans only to be brought down by the Town man in the area. Miraculously, instead of awarding the penalty, the referee chose to book Forster for diving!
55 mins: Nicky Forster got between Margetson and his defenders and neatly lofted the ball home to open the scoring for the Royals. The Town defence was in disarray as the patient Reading striker pounced when his chance came up.
54 mins: Leon Knight crossed brilliantly against 3 defenders. His cross found Andy Booth who headed inches wide.
48 mins: Andrew Hughes' shot was wide of the mark.
47 mins: Rougier got behind Gray and Moses had to pass back quickly for Margetson to belt the ball clear.
Reading gave the Terriers a tough first half test with chances falling for Nicky Forster and the outstanding Tony Rougier. Forster spurned a 17th minute chance from Rougier's flick on and Rougier himself was clean through on several occasions only to be denied each time.
Leon Knight was Town's only outlet for long balls out of defence and the Royals made sure he was well marked at all times, leading to some frustration from the home fans who had to savour a couple of half-chances from Chris Hay and a Danny Schofield shot which went wide.
47 mins: Leon Knight was onside after a great Town move but he didn't react to the ball and it went out.
46 mins: The fourth official indicated 2 minutes of added time.
45 mins: Margetson collided with Evans after the ball had long gone.
44 mins: Rougier chased a long ball a poked towards the goal but Margetson was well placed to pick it up.
40 mins: Chris Hay's cross was dragged back by Andy Booth. Danny Schofield lashed a shot wide.
37 mins: Town were starting to compete in midfield and give as good as they were getting from Reading.
36 mins: Leon Knight flashed the ball across the face of goal after a Booth flick on.
31 mins: A great ball by Irons fell too far in front of Leon Knight whose chase upfield almost bore fruit.
30 mins: Danny Schofield broke out of defence and sent a long ball up to Leon Knight but he was being double marked and lost the ball.
25 mins: Tony Rougier's flick on at the far post found Parkinson but his effort somehow missed!
22 mins: Hahnemann picked up Hay's accurate drive - a rare Town chance.
19 mins: Hay crossed for Andy Booth but it went out of play. Hay had earlier tried to get a shot in but to no avail as the visitors looked much the better side on the ball.
17 mins: Reading looked increasingly strong on the ball. Rougier went past Gray and Evans and crossed enticingly for Salako and Forster but Forster could not find the net at close range as Adie Moses cleared off the line.
14 mins: Adie Williams was struck in the face, possibly after a challenge with Andy Booth, and needed treatment.
13 mins: Joe Gamble's effort spooned into Margetson's hands.
12 mins: Irons' corner didn't find Kevin Gray.
10 mins: Knight nipped in between two defenders and pushed an effort goalwards but it was cleared.
8 mins: Tony Rougier's goalbound shot hit Forster's backside.
6 mins: Salako's corner was misjudged by Gray but Nick Shorey headed over the bar.
6 mins: Margetson watched a right footed shot fly past the post from a Reading player.
5 mins: The visitors seemed happy to allow Town possession in their own half.
3 mins: The Royals started in an attacking fashion and had an early corner caught by Margetson.
Chris Holland came back from injury to replace Dwayne Mattis who was himself suffering from a groin strain. Craig Armstrong was back on the bench for his first appearance on a Town teamsheet since August.