Nathan Dillehay took the loss, pitching 6 2/3 innings and giving up one earned run on five hits and striking out two.
He also was 1-for-3 at the plate with two RBI.
The Orioles defeated Chippewa Hills, 6-0 in the semifinals.
Hayden Madl was the winning pitcher, allowing just three hits and three walks while striking out eight.
Wilson Gunsell was 2-for-3 with three RBI and Stephen Weinert was 2-for-3 with a double, a walk and a run scored.
“Though the outcome today was heartbreaking, that does not take away from the effort our team put in today,” said Ludington head coach Evan Kroeze.
“Our guys played their best baseball of the year, against great competition and I could not be more proud of them. All year they have shown heart, grit and determination, which were all showcased this afternoon.
“We gave ourselves a shot to take home a trophy, and unfortunately baseball can be a cruel game. But, this team is a family and nothing will ever change that.
“I am honored to have been their coach, and it has been one heck of a year.”
Ludington finished the season 19-11 overall and 10-2 in the Lakes 8 Activities Conference.