They had fought back from an early Scottish onslaught to be tied 13-13 at the break, but Brian Walsh's men crucially leaked two tries in the second period.
Walsh, the Cork Constitution coach, said afterwards: "I thought it was a good game played in great spirit with some decent rugby played in it at times.
"The second half was always going to be exciting but we really needed to be ahead at the break given that we had the wind behind us.
"Indeed, I actually thought we played better in the second half, but we were chasing the game and a couple of mistakes led to our downfall."
At the start of the match Scotland were playing at a very high tempo and it was somewhat of a surprise that it took them nine minutes to get on the scoreboard through a converted Fraser Harkness try.
Nevertheless, Walsh was pleased with his side's fight back leading up to half-time thanks to a try by Dolphin's Barry O'Mahony and three place-kicks from the left boot of his club-mate Barry Keeshan.
"Scotland really came flying out of the blocks and came at us physically. Their pack ran very dynamically, but we defended well and gradually forced our way back into the match with a good try.
"The first few minutes of the second half were end to end, but that will happen when scratch sides are thrown together.
"We got a good try of our own through Kevin Moran, but Scotland always managed to keep ahead of us and in the end we just could not claw the lead back."
Despite the loss, Ireland, led by Hugh Hogan, played their part in a smashing match and Walsh is sure the Club International format should continue to go from strength to strength.
"I have been involved for the last couple of years and I think it is great that the guys who give so much to their clubs get the chance to play at this level," he added.
"The Ireland-Scotland matches so far have all been good and let's hope they continue."