The Iron's reserves were defeated 2-0 by their Mansfield Town counterparts at Field Mill on Wednesday night.
Calvin Andrew bagged a brace for the hosts, with the goals coming either side of half-time as the Stags won the Central League Cup tie.Early on, George Grayson forced the Iron's first corner of the game with a sweetly hit first time cross after good work from Kyle Wootton down the left.
Curtis Bateson then hit over from 25-yards following a near post corner.
It was an even contest in the first half as Scunthorpe poked and prodded but the hosts defended resolutely.
Always a threat, Andrews came close on a couple of occasions for the home team while Kyle Wootton was brought down on the edge of the area but nothing was given.
Town then broke as Beevers burst down the left and fizzed across the face of goal where Speight just couldn't quite stretch to turn it in.
They then took the lead when a crossfield ball evaded Zac Cowling's leap at the back post and Calvin Andrew clipped over Severn as the 'keeper rushed out.
Seeking an instant response at the start of the second period, Jamie Wootton struck after good work from Sutton to play him in. John McCombe slid to block though and the goalkeeper collected.
Shortly after, powerful play from Calvin Andrew sees him drive past the whole Iron right side before cutting back to Louis Briscoe, who hit over.
Midway through the second half, Mansfield made it two as Andrew shot from the edge of the box, it was deflected and completely wrongfooted Severn.
A match of few real chances of note, the hosts hit the post not long after as Beevers whipped in a dangerous free-kick towards Andrew, who hit the post with a powerful header.
Then, Andrews slid into Palmer who hit the near post.
Soon after, Briscoe laid up for James Jennings to slide Palmer in, who beat the offside trap and forced strong wrists from Seven to palm away.
Mansfield finished the stronger team but it ended 2-0.
Iron team: Severn, Cowling (Hood), Grayson, Boyce, Howe, Hare, Bateson, Sutton, Jamie Wootton (Mawson), Kyle Wootton, Burdett.
Substitutes not used: Smythe, Hawley, Bowskin.