Donegal outscored South Down by four points to one in extra-time of a tense and exciting semi-final at Pairc Esler, where star of the game was Donegal's Niall Campbell, whose 0-11 included a late point to send the game into the extra 20 minutes.
South Down started strongly, but a goal from Enda McDermott helped Donegal to a 1-6 to 0-4 lead before Kieran Courtney's goal made it 1-8 apiece at the break.
Eoin McGuinness put the hosts a point ahead with five minutes to go before Campbell levelled at 1-11 each.
And Donegal seized the initiative in the first period of extra-time with points from substitute Lee Henderson and McDermott.
John O'Kane gave South Down some hope but Donegal wrapped it up with points from Ronan McDermott and a Campbell free.
Scorers -- Donegal: N Campbell 0-11 (9f), E McDermott 1-1, S Boyle, L Henderson, R McDermott 0-1 each. South Down: L Morgan 0-6 (3f, 1 '65'), K Courtney 1-0, J O'Kane 0-3, P McAleenan, E Trainor, E McGuinness 0-1 each.
Donegal -- P O'Brien 8; S O'Connor 7, C Breathnach 8, A McDermott 8; J Donnelly 7, C Dowds 8, J Boyle 7; E Organ 6, S Boyle 8; N Campbell 9, P Sheridan 7, E McDermott 8; M McCann 7, C Mathewson 7, P Hannigan 7. Subs: L Henderson 7 for E Organ (h-t), R McDermott 7 for C Mathewson (77), M McGhee 6 for M McCann (80).
South Down -- D Kearns 8; C Teague 8, J McGrath 8, P Byrne 7; A McGuinness 7, K Courtney 8, E Donnelly 7; L Morgan 8, P McAleenan 7; J O'Kane 8, E Trainor 7, E McGuinness 7; M Magee 6, M Cunningham 6, A Brown 7. Subs: P Sheehan 6 for P McAleenan (40), N Burns 7 for M Magee (50), L Deegan 6 for A Brown (58), J Brown 7 for N Burns (65), P McAleenan 7 for J Brown (79), A Brown 6 for L Deegan (80).
Ref -- S Cleere 7 ( Kilkenny).
Two goals from Rory O'Neill in Birmingham on Saturday gave Tyrone the impetus to claim their place in the final.
O'Neill's first came midway through the first half as the visitors took a commanding lead, but Warwickshire fought back in determined fashion, with Kieran Boxwell's goal helping to reduce the half-time deficit to just a point.
However, Tyrone pulled away with an eight-point flurry after the break -- O'Neill's second came on 50 minutes -- and Conal Maskey's late goal was just a consolation for the hosts.
Scorers -- Tyrone: A Kelly 0-7 (5f), R O'Neill 2-0, C Grogan
0-4, G Fox, M Winters, J Kelly, M O'Gorman 0-1 each. Warwickshire: D Kelly 0-6 (4f), K Codd 0-4 (1f), K Boxwell, C Maskey 1-0 each.