In front of Pool's biggest home League crowd in over ten years a first half penalty from Charlie Adam set the home side on their way after 32 minutes with DJ Campbell doubling their lead nine minutes into the second half.
However Joe Garner's header on 65 minutes set up a tense finale before Campbell's second three minutes from time settled the home side's nerves.
The scoreline was harsh on Billy Davies' men and had Dele Adebola not scooped the ball over from three yards just before the break the outcome might have been different.
Even after the break Forest had their chances but Ian Holloway's side were clinical with the few clear-cut opportunities that came their way.
In a first half of few chances and low quality, right-back Seamus Coleman on loan from Everton looked the classiest player on the pitch and it was he who was up ended for the penalty which Scotland international Adam converted for his 17th goal of the season.
After half-time the game opened up and shortly after Luke Chambers had headed straight at Pool keeper Matt Gilks from close range, Campbell on loan from Leicester City, responded to the taunts of rival Forest fans with a an emphatic half volley to put the Seasiders two up on 54 minutes.
Garner's glancing header from a Chris Cohen free-kick gave the visitors hope midway through the second half and the tackles then started to fly in as Davies' robust side sensed an equaliser.
Substitute Rob Earnshaw's overhead kick flew over as Forest pressed, but then Campbell sealed the priceless win for the Seasiders with a stunning finish after good work down the left by Gary Taylor-Fletcher.
There was still time for Earnshaw's crisp drive to be kept out by Gilks, but Pool held on to remain two points outside the play-offs with two games to play.