The Bucks took the lead midway through the first half from the penalty spot after good work by Mo Faal to win the spot kick.
Brendon Daniels slotted home comfortably to put them ahead.
It was a dominant first-half display by Telford given their current predicament but the visitors came back strong in the second half.
Ashley Hemmings hit the post and with just six minutes left on the clock, Zak Brown pulled one back with a curling effort into the corner.
And three minutes later the comeback was complete when substitute Ethan Freemantle headed home from a set play leaving little time for the Bucks to come back.
To make matters worse Daniels got himself sent off in the closing stages for a ridiculous challenge on Freemantle.
It has been a miserable start to the season for AFC Telford United in the league.
They had won just one of their first 17 National League North fixtures, and since Kevin Wilkin has taken charge, they have lost every league fixture.
But they did win in the FA Trophy on Saturday, so the local derby against Kidderminster Harriers was an opportunity for the Bucks to win back-to-back games.
The Bucks started the game brightly, and when Faal picked up the ball on the edge of the area, he ran at his man - but his shot was saved by Tom Billson.
But moments later, Telford had the lead - Faal again got away down the left, and Joe Foulkes' clumsy challenge brought the forward down in the box for a penalty to the hosts.
Daniels was calm under pressure as he hammered the ball past Billson.
The goal gave the home side confidence. Kobe Chong saw a shot deflected wide, and Faal could not direct a header on target when latching onto a short header back to the keeper by Krystian Pearce.
Harriers responded after the break and they were almost on terms when Hemmings stabbed a shot against the post, but it stayed out, and Bucks cleared.
The visitors pushed for an equaliser, and with just six minutes of normal time remaining Harriers got their goal.
The Bucks had several chances to clear, but they kept losing it on the edge of their box.
Eventually, Zak Brown picked up the ball and curled it into the corner - a goal of real quality for the visitors.
Just three minutes later, the comeback was complete when substitute Freemantle headed past Pilling from a corner.
And to add insult to injury, Daniels got himself sent of for a ridicuous challenge on Freemantle in the closing stages.