The Highlanders trailed 18-6 at the break but scored three tries in the second spell to get themselves back into the contest.
The home side was battering away at the line late but came up with a costly fumble.
It was the Highlanders fifth consecutive loss and they find themselves at the bottom of the competition standings in desperate need of win.
The Blues opened the scoring with a penalty in the opening minute and then powerful winger Caleb Clarke jigged his way over from about 20m out and ran around to score under the posts.
The visitors had lost possession but won it back at a breakdown and swung it left to Clarke.
Mitch Hunt trimmed the led to 10-3 with a penalty.
But moments later winger Mark Telea carved through in the midfield and the Highlanders were back defending.
Beauden Barrett landed a second penalty which would have been a comfort of sorts to the Highlanders.
The Blues looked a lot more threatening and conceding three points was a minor win.
Telea, who looked dangerous every touch, skipped through an ineffectual tackle by Mosese Dawai but lost the ball. Another narrow escape for the home side.
Hoskins Sotutu, who had a strong half, muffed the pick up from the back of a 5m scrum thanks to Aaron Smith, who managed to disrupt the ball.
But Sam Nock scooped up the loose ball and swung it to Barrett who scored in the corner.
The Blues probably should have been up more than 18-6 at the break.
Highlanders loose forward Shannon Frizell made a series of strong carries as the Highlanders battered away at the line.
Eventually a gap appeared out wide and fullback Sam Gilbert cut through on a nice angle run to score.
It was the result of hard work but what happened down the other shortly after was the result of raw power.
Sotutu busted through a gang tackle and swatted off another to score.
It should have been a dagger but the Highlanders replied immediately.
Gareth Evans made a good carry of the back of a scrum. Smith skipped past another couple and then prop Daniel Lienert-Brown, looking more like his brother Anton Lienert-Brown, sprinted through the gap to score.
Dawai thrilled the home crowd moments later when he gathered an up and under and scored, only for the TMO to find a knock on and rule it out.
When Stepehn Perofeta darted through a gap to score at the other end, the Highlanders looked done.
But the home team kept battling and replied through a second to Gilbert to set up a tense finish.
The Score
Blues 32 (Caleb Clarke, Beauden Barrett, Hoskins Sotutu, Stephen Perofeta tries; Barrett con, pen 2, Perofeta con 2)
Highlanders 25 (Sam Gilbert 2, Daniel Lienert-Brown tries; Mitch Hunt con 2, pen 2)
Halftime: 18-6.