Coming into the contest on the back of a heavy defeat at RB Leipzig last weekend, Jess Thorup’s men knew a positive response was needed on home soil.
However, it was the visitors who edged a cagey opening half-hour, with Julian Weigl and Tim Kleindienst directing a pair of half-chances wastefully wide of the target.
Monchengladbach continued to dominate possession and probe for a breakthrough with half-time approaching but it was the hosts who took the lead against the run of play in the 39th minute.
Die Fohlen failed to deal with Dimitrios Giannoulis’ delivery into the box, allowing Schlotterbeck to cushion the ball on his chest before powering a sublime volley into the roof of the net beyond Moritz Nicolas.
Augsburg looked to carry the momentum that goal brought into the early stages of the second period, but Thorup’s men were soon indebted to keeper Nediljko Labrovic, who saved smartly from Tomas Cvancara’s close-range effort.
Chances continued to flow at both ends of the pitch and the hosts doubled their lead with 25 minutes remaining, as substitute Claude-Maurice picked up a loose ball on the edge of the box before sending a low deflected strike into the centre of the goal.
Undeterred, Monchengladbach halved the deficit just seven minutes later when Kleindienst rose highest in the six-yard box to head home from Kevin Stoger’s corner.
That set up a fascinating final 15 minutes as the visitors pushed for a late leveller, with Robin Hack seeing a low header expertly saved by Labrovic.
Gerardo Seoane’s side continued to commit numbers forward in the final stages, but the Augsburg rearguard held firm under pressure to earn their second Bundesliga win of the season, moving above their opponents into 11th in the process.
Flashscore Man of the Match: Keven Schlotterbeck (Augsburg)