It is the best run the Reds have produced since the days of Brian Clough - and it was enough to lift Billy Davies' side into third place in the Championship, level on points with West Brom.
It was a special afternoon for Davies as he engineered a win over the club he twice guided into the play-offs as manager at Deepdale.
And the game followed the script perfectly as, after a flying start from Forest in which they forced the visitors firmly onto the back foot, skipper Paul McKenna popped up to fire the opening goal in spectacular fashion against his former club.
The midfielder refused to celebrate too dramatically out of respect for the travelling fans, but his goal was truly special, as he drove a dipping 25-yard shot accurately inside the post after a corner had been cleared to him in the centre on 16 minutes.
Forest could have had a quick-fire second as Paul Anderson cut in from the left to smash a powerful shot low towards the near post, where keeper Andy Lonergan saved well, while Dele Adebola headed over after Forest had forced another in a succession of first-half corners.
Prior to that, Adebola had made a half-hearted penalty appeal following a physical tussle with Billy Jones just inside the box, Anderson had connected on the stretch at the far post following a clever ball from Robert Earnshaw, to send a wild shot wide of the post and Wes Morgan had headed forcefully into the side-netting.
Forest had the ball in the net a second time, as Earnshaw turned neatly before firing home - but the striker had strayed into an offside position.
Another half-cleared corner did eventually lead to a second goal for Forest however, as Nicky Shorey delivered an outstanding ball into the box from wide on the left, with Adebola breaking the offside trap and side-footing home emphatically from five yards in the 25th minute.
Richard Chaplow drove a shot into the side-netting as Preston threatened for the first time.
But it was Forest that remained the more dangerous of the two sides, threatening to extend their lead further with Radoslaw Majewski curling a delightful effort inches wide of the post from the left edge of the box.
And Anderson was only denied by a brave, instinctive save from Lonergan after the winger had been sent racing clear down the left-hand channel.
After the break Earnshaw was denied by the offside flag again, although Lonergan was also this time well-placed to make an instinctive save as the striker prodded the ball goalwards.
McKenna came close to netting his second of the game as he connected with another long-range shot that had the keeper looking on nervously as it flashed wide of the post.
Ross Wallace came close to pulling one back for the visitors when he unleashed a crisply struck effort of his own from the edge of the box, which was only narrowly off-target.
Earnshaw's personal search for a goal continued as a clever exchange of passes between the Wales international and Chris Cohen sent him clear, only for keeper Lonergan to make another impressive save.
It was the man who replaced him that netted Forest's third however, as Lewis McGugan came off the bench to prod the ball home at the second attempt after the busy Lonergan had initially saved in the 82nd minute.