It proved to be another difficult game for the squad against a side who are currently fourth in the table.
With Noa Bailey and Sam Merigaux looking dangerous down the wings, Lyme posed the greater threat early on but the home side hit back to open the scoring and then doubled the lead before the break.
Things did not improve in the second half with the home side taking full advantage of their chances and The Seasiders failing to capitalise on theirs.
East Budleigh eventually ran out 5-0 winners and Lyme Reserves are still looking for a second win of the season.
Jon Davies won the Man of the Match Award for his tireless work in midfield and Julien Simier made a notable return after several weeks out through injury.
Lyme Regis Reserves recorded their first league win of the season with a 6-4 success against Yetminster United Reserves in Division Two of the Perry Street and District League.
Steve Batey returned to action with a hat-trick and there were also goals from Alex Burroughs (2) and Nathan Aston. The Man of the Match Award went to Burroughs.
This Saturday (October 25th) Lyme Regis entertain top of the table Upottery at Davey Fort, Lyme Regis Reserves travel to Farway United and the Rovers are away to Ilminster Town A.
The first two games start at 3.00pm while the Rovers kick off at 2.30pm.