Houston started well, controlling the bulk of the possession in the opening ten minutes with FC Dallas forced to just hoof the ball clear more often than play out.
Houston continued to control the proceedings but struggled to create genuine chances, while Dallas came more in to the match.
Tempers nearly exploded in the 28th minute as Will Bruin threw down the defender to clear space prompting an angry reaction from the FC Dallas defense that faded just as quickly as it started.
FC Dallas stunned Houston when they took the lead through a long free-kick that was floated in to the box and poorly dealt with by Adam Moffatt as the ball bounced off Moffatt and on to George John who sent the ball in to the net.
Just one minute later another set-piece doubled Dallas' lead as Andrew Jacobson made space for himself on the corner and buried an impressive volley.
Houston were spared in the 41st minute as John was played through and buried his effort off the far post only to be denied by a tight offside call.
Houston Dynamo were able to stop the rot to an extent as they held off FC Dallas for the rest of the half as the hosts went in to the break 2-0 up.
The second half saw Houston Dynamo stabilize as Houston came back in to the match in the middle stages of the half.
Michel saw himself lose possession to Kofi Sarkoodie which allowed Sarkoodie to cross for Andrew Driver who smashed the ball in off the bar to bring Houston back in the game.
With seven minutes to play Houston Dynamo stunned the hosts as Cam Weaver's cross was dropped by Raul Fernandez right at the feet of Brad Davis who easily tapped home the equalizer.
Just when Houston thought they'd retain the cannon Kenny Cooper came up big for FC Dallas as Michel's cross beat Je Vaughn Watson and found Kenny Cooper who messed up his first header which fell to him allowing him a second chance that he made no mistake with, winning the derby for FC Dallas.