Despite earning high marks from the ice panel for her jazz themed routine during the show's dance week, the Waterloo Road actress was placed in the bottom two.
As part of their main showcase Zarrah and partner Andy Buchanan earned 32 points out of a possible 40 from the judges, with Robin Cousins describing the routine as "sassy".
"You really came alive tonight," Ashley Roberts told them.
But as always Jason Gardiner had a few critiques for the pair telling them that while their routine was "confident" the performance "just didn't grab me".
Zarrah and Andy danced a classic routine to Don't Cry For Me Argentina, from the musical Evita, in the skate-off against Kyran and his partner Nina Ulanova, who staked to Snow Patrol's Chasing Cars.
The judges had a difficult decision in picking one celebrity to send home, with Karen Barber telling them: "This is tough; I want to save you both."
Karen chose to save Kyran, as did Ashley, while Jason thought Zarrah should remain.
Head judge Robin had the deciding vote as he chose to keep Kyran in the competition.
Speaking to hosts Phillip Schofield and Christine Bleakley, Zarrah fought back tears as she told them: "This experience has been absolutely wonderful.
"I am sorry to say goodbye to everybody, but I just want to say thank you."
Meanwhile it was a good night all round for the rest of the Dancing On Ice contenders, with Ray Quinn and partner Maria Filippov receiving the first set of full marks of the series.
You're about as street as Sesame Street.
Jason Gardiner to Gareth Gates
And last year's champion Beth Tweddle was finally back on form after a quiet few weeks as the judges awarded her and partner Lukasz Rozycki 36.5 points.
Karen told the Olympic gymnast her Scottish themed routine was "a trill to watch" while Ashley complimented the pair on being completely in sync throughout the performance.
Jason said: "Beth, I would have a highland fling with you tonight. That routine was very exciting and full of commitment. Well done."
Sam Attwater also received encouraging comments from the judges following his Bollywood themed performance with real-life fiancée Vicky Ogden.
"I really loved the detail in that performance," said Karen. "That was your best performance by far."
Suzanne Shaw also climbed the leaderboard on Sunday as she received 33 points for her ballet inspired routine, while singer Bonnie Langford was left at the bottom of the list with 27.5 points after she performed a Waltz.
Unfortunately Gareth Gates' attempt to win over Jason failed again as his street dance routine fell a little flat.
"You're about as street as Sesame Street," Jason told him.
However the other judges were slightly more encouraging, with Karen telling Gareth he "brought the entertainment" to the ice.
And Coronation Street actress Hayley Tamaddon earned 38 points from the ice panel, as she and partner Dan Whiston performed a Charlestown dance.
Karen told her: "You are fun, feisty and full of personality."
Next week the remaining celebrities will have to duel it out on the ice as they are pitted against one another.
Dancing On Ice returns to UTV on Sunday from 6.15pm.