Top-seed Tamarine was favored to succeed where she failed four years ago in her womens singles final against Uzbekistans Iroda Tulyaganova but succumbed in straight sets 6-1, 6-3.
The world No. 27 couldnt get to grips with her game and was unable to hold her own serve until the fifth game of the second set, losing in 69 minutes.
"Iroda was playing so well," Tamarine said. "Her shots were more aggressive. She played well on the big points. She served unbelievable. She deserved it."
Tulyaganova, ranked four places below Tamarine on the WTA Tour, won her first title since last years WTA event in Vienna.
"Its one of my best victories," Tulyaganova said. "I was playing for my country, not just myself, and Im glad I could make all those people happy.
"I think I will wake up some people. Its something big for my country that we have a gold medal."
While there was defeat for Tamarine there were no such problems for compatriot and favorite in the mens singles Paradorn Srichaphan.
The world No.28 breezed into a Saturday final against South Koreas Lee Hyung-Taik with a 6-3, 6-3 win over Uzbekistans Oleg Ogorodov.
In the mens doubles final, Mahesh Bhupathi and Leander Paes earned Indias 10th gold of the games, downing South Koreas Lee Hyung-Taik and Chung Hee-Seok, 6-2, 6-3.
A total of 19 gold medals were to be settled on Friday, in sports including womens football and hockey as well as karatedo and taekwondo.
The boxing tournament meanwhile, continued to embrace controversy as it moved into the semifinal stages.
The competition has been bedevilled by claims of biased officiating, and International Amateur Boxing Federation supremo Anwar Chowdhry for the first time acknowledged the problem.
Chowdhry labelled a decision made in Wednesdays heavyweight quarter-finals a disgrace and said he planned to ban the judges responsible for four years.
Jordanian heavyweight Yousef Hasan slumped to the canvas crying after he was ruled to have lost a 91kg bout against South Korean Lee Hyun-Song by three points on Wednesday. he 23-year-old from Amman walked sobbing back to the locker room. - (AFP)