It was former City striker Ben Burgess who earned the headlines for Blackpool when, with two minutes of injury time left, he leapt to head home a brilliantly judged cross from Keigan Parker.
City had enjoyed much more of the play in the first half with Folan and Dean Windass causing the much smaller Blackpool defenders a lot of problems in the air.
As the game wore on, Blackpool came more into it with winger Wes Hoolahan using his trickery to open up the Tigers back four time and time again.
Two minutes after the break, Parker went on a run for Blackpool and sent in a low cross which the City defence failed to cope with. The ball ran clear to Gary Taylor-Fletcher who had a simple tap-in past Matt Duke.
Blackpool's joy was shortlived when, three minutes later, Windass set up Ian Ashbee who scored with a glorious 15-yard volley.
After the restart following the injury, Blackpool got on top with Parker twice going close before City's Windass brought a brilliant save from Paul Rachubka.
But it was Blackpool who used their substitutes to good effect and the introduction of Burgess saw them produce far more aerial power which disrupted the City defence time and time again.