Strikes in each half, left Latvia's already slim hope of qualifying for the World Cup finals in Russia in 2018 in tatters.
The first goal came in the 19th minute from Ragnars Nattestad (video may not work in all territories).
The Faroes sealed their victory in the second half with striker Joan Simun Admundsson left completely unmarked. He made no mistake and coolly slotted the ball home.
The narrow recent victory away against Andorra was a warning sign, but Friday's result was even worse with Latvia managing only a handful of half-chances to score and the Faroe Islanders growing in confidence with every minute.
The result means that with two games played, Latvia are fourth out of six team in Group B of the World Cup European qualifying groups with favourites Portugal and Switzerland - plus the Faroe Islands - ahead of them.
The result was treated with a good deal of mockery on social media by sports fans.
FIFA levels:— Aleksandrs NEživijs (@nizivijs) October 8, 2016
The only consolation Latvia can draw is that they are not the first team to be gobbled up by the minnows - former European champions Greece were beaten by the team twice in 2014 and 2015.
Latvia have yet to play the Faroe Islands on their home ground...