The Avengers opened their account in the 13th minute with a Yosuf Ahmed penalty.
New signing Cian Cuba scored with a long-range effort in the 30th minute to make it 2-0.
Dandenong City scored in the first minute of stoppage time, making it 2-1 at half time.
Stefan Zinni, last year’s Avondale FC Best and Fairest Award winner and top scorer, added another goal to his career tally in the 66th minute after cutting inside from the wing.
Super sub Liston Diaz made it 4-1 in the 81st minute.
The Avengers may have relaxed too much as Dandenong City scored in the 82nd minute and again in the 88th minute to make it 4-3, providing a very nervy end to the game.
In the end it was enough as Avondale move to equal first with six other sides.
Avondale FC’s next game is away to St Alban’s on February 18 at 3 p.m.