Donegal lifted the Anglo-Celt trophy after a 0-15 to 1-9 victory at Clones.
Donegal made a strong start with Karl Lacey scoring the opening point.
Paul Finlay then put the points on the board for Monaghan, but Donegal always looked to be in control with Colm McFadden accurate on his frees.
Rising star Odhran McNaillais scored twice in the first half to take Donegal into the break at 0-6 to 0-4.
Jim McGuinness's side dominated early on in the second half with Paddy McBrearty contributing some excellent scores.
But a mix up in the Donegal defence allowed Monaghan through on goal and Christopher McGuinness closed the gap to just a point.
McBrearty, a former minor star, was one of the best players on the afternoon and a key source of points for Donegal and could be a key player in their All-Ireland challenge.