Manchester United needed an 81st goal from Paul Scholes and an even later effort from Dwight Yorke to subdue the Dutch champions after an indifferent display.
A Mickael Silvestre cross from the right was pulled back by substitute Dwight Yorke into the path of the midfielder who blasted in a finish to relieve the nerves at Old Trafford.
Yorke was then put clear in the 87th minute by Giggs to run in and hit a low shot for the third goal.
United had the best possible start in a storming 15 minutes in which they threatened to hand out a real beating to PSV.
A clipped David Beckham corner found Teddy Sheringham completely unmarked in the six yard box to plant a header into the net.
A powerful drive from Paul Scholes from the edge of the penalty area almost extended the lead but his effortr went just wide.
PSV then recovered their composure and although they were having to settle for speculative efforts from long range the Dutch champions were the better passing side.
Ryan Giggs almost made amends for United's dip in form during the first half when he created a great chance for Sheringham with a run down the left wing and cut back but the veteran blasted his shot over the cross bar.
After that 45th minute chance United seemed to get more nervous as the second half wore on.
Ronnie Johnsen hit the crossbar with a header and Sheringham wasted a great chance from in front of goal with a weak header but PSV controlled long spells of the game with their passing game.
A goal was coming and in the 75th minute it arrived for the Dutch team who were angered by comments from United manager Ferguson yesterday that the PSV team were "arrogant" and "divers".
United made a mess of clearing a cross and Eindhoven captain Marc Van Bommel half-volleyed high into the net when he claimed the loose ball.
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