A sterling first half performance saw the Mid champions lead 1-6 to 0-3 at the break.
On resumption Kilsheelan came out strong as a Paul Maher goal and pointed frees by Evan Comerford reduced the deficit to two points.
Loughmore steadied the ship through some well taken points from play and frees by James Egan before Liam McGrath added one at the end to ensure the Mid champions progressed.
The absorbing game finished 1-12 to 1-8. Afterwards Loughmore manager Declan Laffan told Tipp FM Sport it had everything
Elsewhere, Holycross Ballycahill and Clonmel Óg both progress to the semi-finals in the County Intermediate Football Championship following good wins last night.
In a dominant performance Holycross Ballycahill hit 2.11 to Inane Rovers 0.03.
In the other quarter final Clonmel Óg ran out 3.07 to 1.11 winners over Rockwell Rovers.
They will join Mullinahone and Upperchurch Drombane who are already through to the semi finals.
