The match was played in atrocious conditions, heavy rain falling for all of the match.
Within the first two minutes a low centre flashed across the Dynamo penalty area without a final touch from a Gresley player. This set the tone for the first half, with the first twenty minutes being all one way traffic towards Dynamo's goal.
Gresley played some attractive football, Dynamo goalkeeper Ros Whalin producing an outstanding save from Robert Spencer in the eighth minutes. Two minutes later Spencer went down in the Dynamo penalty area under pressure, but was given a yellow card for simulation by referee Andrew Fox.
The seventeenth minute saw Alex Steadman's header saved by Whalin, the ball running loose then being cleared off the line.
Dynamo then went down the other end and Nathan Watson produced an outstanding save from visiting keeper Mats Morch.
Against the run of play Dynamo took the lead in the twenty-first minute, Rob Norris's shot deflected wide of Morch.
Gresley continued to dominate play, and equalised in the twenty-seventh minute when Paolo Piliero turned the ball into the path of Jack Langston, who drove home.
A minute later Whalin produced an outstanding save from Alex Steadman, but this only delayed proceedings as sixty seconds later Whalin produced another outstanding save, but could not hold the ball, which stuck on the goal line, Steadman driving the ball home.
Gresley's pressure continued, Robert Spencer's header blocked on the Dynamo line, and a further save from Whalin, this time from Liam Guest, looked like Dynamo would go in to the half time break with a one goal deficit.
All this changed in the second minute of stoppage time when Dynamo's captain Jake Betts, helping out in attack, latched on to a loose ball in the Gresley area and drove the ball home. Morch managed to get both hands on to ball, but could not keep the ball out of his net.
The second half was a far more even affair. Dynamo's first effort saw substitute Kris Nurse blaze over after being set up by Nathan Watson.
Sam Wood then drove wide from a good position, but Gresley then came back, Spencer drew a good save from Whalin.
The seventy-third minute saw Morch lose the ball under pressure from Nurse, mainly due to the appalling conditions. Goal bound shots from both Nurse and substitute Lee Smithson were blocked on the Gresley line.
The winning goal came four minutes later, the ball was fed to Luke Blakley who drove home with style.
Gresley came back at Dynamo, Whalin producing two outstanding saves, and in six minutes of stoppage time the home defence twice cleared the ball from near the Dynamo line, but the Dynamo held on and secured a quarter final place.