Caersws crashed out of the league cup in the first round after once again squandering a lead.
Russian Davies put them ahead in the 12th minute with a header from a Phil Jones cross.
Unfortunately they were unable to hold the lead and goals from Tom Freeman and Jack Jones had Gresford ahead at the break.
A further goal from New signing Mike Latham clinched the win and a home game against Penrhyncoch in the next round