Rushden took the lead in the first minute when Glenn Wilson's long throw was half-headed away and Marcus Kelly managed to head home past Tony Roberts from five yards out.
Dagenham retaliated quickly and Craig Mackail-Smith crossed for the incoming Glen Southam who was inches wide.
On four minutes Dagenham equalised when Sam Saunders found Mackail-Smith whose first shot was parried by Nicky Eyre but he followed up to score. Dagenham went ahead in the tenth minute when Mackail-Smith played in Paul Benson who showed great skill to beat Wayne Hatswell and then went on to slip the ball past the oncoming Eyre.
After a hectic opening the game settled into a pattern and both sides found it hard to create clear-cut chances although on 30 minutes Rushden teenage forward Lee Tomlin shot just wide from 20 yards out.
On 25 minutes Rushden produced their best move of the game but it ended in frustration when Kelly wasted his cross and a minute later Dave Savage shot through a crowd of players but Roberts saved comfortably.
On 39 minutes Rushden equalised when they were awarded a penalty when Benson handled Tyrone Berry's fierce shot and Paul Watson coolly slot the ball into the top corner of the net.
Rushden's lead however was short-lived and Dagenham regained the lead on the 45th minute when Rushden failed to clear Sam Sloma's corner and Mackail-Smith stole in to score his second goal of the game with a header.
Dagenham went close in the first minute of the second half when Glen Southam forced a good save from Eyre and in the 49th minute Kelly's misplaced header let in Dagenham's leading goal scorer Benson but the striker was wasteful and only shot into the side netting.
On 52 minutes Simeon Jackson saw his fierce shot bring an excellent save from Dagenham's veteran keeper Roberts.
Rushden again went close in the 55th minute when Roberts made another excellent save to deny Tomlin who thought his excellent volley was to hit the back of the goal.
Rushden pressed hard for an equaliser but Dagenham's central defenders Anwar Uddin and Shane Blackett were excellent at the heart of the visitors defence and Rushden's two teenage forwards Jackson and Tomlin found their physical presence hard to beat.
On 76 minutes Dagenham almost went further ahead when the ever dangerous Mackail-Smith forced a fine finger-tip save from Eyre.
Rushden should have equalised in the 79th minute when Tomlin put Jackson through but the teenager did not show enough composure and shot inches wide.
On 89 minutes Rushden substitute Tom Shaw forced another good save from Roberts and on 90 minutes Jackson again should have equalised when clear on goal but again was off target.
Dagenham & Redbridge will be pleased with their victory after their FA Cup exit last week and will take great heart from their performance against a side that has shown great improvement in recent weeks under their caretaker manager Tony Godden. Rushden however will be extremely disappointed particularly as they had two good chances late in the game to gain at least one point if not three.