It was only the second defeat of the season for the Magpies but it exposed shortcomings in a squad that caretaker-manager Hughton may have to reinforce if a return to the Premier League is to be made at the first attempt.
Hughton may first have to secure his future at St James' Park with a step up from his caretaker role to take the manager's job on a permanent basis.
It is what he wants but his fate is not in his own hands and the sooner owner Mike Ashley makes up his mind on deal or no deal for the club, the better it will be for the team on the pitch.
Yesterday they were without Steven Taylor, forced out by a hamstring injury, and Fabricio Coloccini through a troublesome groin strain, and without them the defence looked shaky from the start.
They were unable to cope with the mobility and sharpness of movement of Forest, whose fourth successive victory marked them out as promotion candidates.
The winning goal, slid in just before half-time by striker Dexter Blackstock, summed up Newcastle's deficiencies on the day.
Blackstock's strike partner Radoslaw Majewski was given far too much space in midfield to pick out a pass that split open the widespread centre of Newcastle's defence for Blackstock to run on and skilfully guide his low shot past the advancing Steve Harper.
Blackstock said: "Harper came charging out so that made up my mind to try a first-time shot and it went in the bottom corner."
A half-time team talk by Hughton led to an improved second-half performance but, despite producing a couple of spells of pressure, Toon rarely looked like forcing an equaliser that would have kept them on top of the table.
Midfielder Kevin Nolan, who had a 69th-minute goal ruled out for offside, predicted during the week that if Forest won they would celebrate beating United as if they had won the European Cup again.
That obviously inspired Billy Davies' team, who stayed solid as Newcastle fought back.
And at the final whistle the Forest players produced only muted celebrations despite their fans going wild with delight.
Blackstock explained: "It's the same as any other win. Newcastle are a big club but it's still three points."
Forest deserved their win. They might have taken the lead after three minutes when central defender Wes Morgan sent in a deep free-kick for Blackstock to force Harper into a fine diving save inside the far post.
Harper, making his 100th league appearance for Newcastle, then kept out Majewski's 20-yard effort before Blackstock headed against a post from a 14th-minute corner by Majewski.
As Forest built up pressure, the Magpies were being pressed deep into their own half and were rarely able to get over halfway.
When the pressure was eventually, relieved striker Andy Carroll had an angled shot deflected for a corner.
Then he set up strike partner Marlon Harewood for a chance that the former Forest player - on loan from Aston Villa - headed wide.
Hughton's team almost took the lead in the 27th minute when right-back Ryan Taylor curled in a 40-yard free-kick that evaded everyone in the area for the ball to strike the outside of the far post.
Towards half-time, however, Toon were pushed back again. After Nathan Tyson had volleyed just wide of the far post, Blackstock headed over from an excellent Chris Gunter cross. Then right-winger Paul Anderson dragged a 20-yard effort wide.
Forest netted in the last minute of the first half as Blackstock's efforts were rewarded with his sixth goal of the season.
The game took on a different shape after the interval as Newcastle took a more positive approach, pushing midfielder Nolan further up in support of the strikers. Nolan set up a fine chance for left-winger Peter Lovenkrands but the Danish international blazed high from 15 yards.
Harewood had a close-range effort deflected off central defender Kelvin Wilson for a corner.
And when Taylor swung in the flag-kick, Blackstock hooked the ball towards his own net and Wilson had to head off the line.
Newcastle's best move of the match led to their short-lived celebrations in the 69th minute.
Captain Alan Smith headed on Taylor's curling cross for Nolan to turn the ball over the line at the far post.
As the midfielder raced to the Toon fans behind the goal, however, referee Paul Taylor spotted a linesman's flag. The Magpies could sense an equaliser and, as Forest tried to break up the play, caretaker Hughton at one stage dashed 30 yards to retrieve the ball to get his side moving again.
Left-back Enrique had a 78th-minute shot deflected for a corner as the Magpies threw more men forward.
But, in the closing stages, Forest killed off the pressure and should have killed off Toon in stoppage time.
Tyson pulled the ball back from the bye-line for substitute David McGoldrick, but from 12 yards the striker shot against a defender.
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By Tricky Tree. Posted October 18 2009 at 12:05 PM.