In one of the best games of the season so far on Thursday, Nathan Cleary produced the defining moment when he charged down a Matt Burton kick and scored in the second half.
It was Penrith's only try after they trailed 6-2 at halftime, but proved enough to overcome a Bulldogs side beaten only twice previously this year.
Last on the ladder a month ago, Penrith are now entrenched in the top eight and could finish the weekend as high as sixth if results go their way.
The four-time defending premiers' revival has come on the back of effort plays like Cleary's charge-down, which was just the second of his career.
A win over Wests Tigers three weeks ago was also sealed with a try-saving Scott Sorensen tackle, while they beat the Warriors last week without any Origin players.
"There are definitely way more things like that happening, that just weren't there earlier in the year," coach Ivan Cleary said.
"We have to keep doing it.
"We started doing it against Parramatta (four weeks ago), they threw heaps at us and we defended well.
"And then in the Tigers game, Soz and Nat made that play at the end of the game. That started it. If you get some results, you see that kind of effort is worth it."
Cleary did not kick goals due to his groin issue, but got through the game unscathed 13 days out from Origin III.
But there were fresh fresh concerns for NSW winger BrianTo'o, who picked up a knee injury and was placed on report for a high tackle late.
Cleary, though, can feel something building again.
"There is definitely that feel of confidence in what we're capable of that probably wasn't there at the start of the year," the halfback said.
"It's those effort things. Over the four or five years, I don't think we've ever been the silkiest team but we've definitely been the team that's worked hard.
"We've let go of looking too far ahead. There were times at the start of the year when we were looking at the ladder thinking can we make the top eight?
"But now we've let go, just tried to build confidence and see where we go."
In an absorbing first half the Panthers got on the board via a penalty goal for a Viliame Kikau high shot, before Jacob Preston bagged Canterbury's only try.
But that did little to sum up 40 minutes that went from end-to-end, only for both sides' defences to hold on.
After Cleary's match-defining charge-down with 26 minutes left, the Bulldogs still had late chances to win it.
Canterbury opted against a penalty kick at goal to level the scores from the sideline with three minutes to go, before Matt Burton spilled the ball a few plays later.
A Stephen Crichton pass also went into touch on the siren.
The result means Canterbury will be knocked off the top of the ladder for the first time since March if Canberra beat Newcastle on Friday night.
But the Dogs lost no admirers, playing 80 minutes with 16 men after Daniel Suluka-Fifita was concussed in the first tackle of the game.
They blunted almost everything Penrith threw at them, with Crichton denying one Casey McLean try and Connor Tracey producing another great try-saver on the centre.
Canterbury's defence also rushed Cleary at every opportunity, and it was telling that Penrith's only try did not come from structured play.
"We've played them three times in the past three years," Bulldogs coach Cameron Ciraldo said.
"We got pumped the first time, last year we showed some good signs we could hang in there a bit longer.
"And tonight we went toe-to-toe for 80 minutes."
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