It was the second week running that Bruno Labbadia's side have lost three goals and should provide Celtic with some hope for Thursday's match.
Anything less than a win would effectively end Celtic's interest in the group with Hamburg favourites to qualify with two of their final three matches at home.
The defeat from Borussia was the biggest shock of the day in the Bundesliga and was the first away win of the season for Moenchengladbach.
Hamburg were twice in front but were unable to retain their lead and lost out when Canadian striker Rob Friend scored his second goal in the 82nd minute in front of a crowd of 57,000.
FRUSTRATING
After the defeat Labbadia said: "We didn't play well enough as a team, it's frustrating to lose when we were twice in the lead.
"It's our first setback of the season but now we have to get ready for the game with Celtic, that is our next challenge.
"We will focus on the Celtic game throughout the week knowing that a win will put us in a great position to qualify for the next stage of the Europa League."
Celtic are certain to go into the match without Artur Boruc which hands a European debut to Lucasz Zaluska.
TESTING
The former Dundee United keeper has played in Celtic's last three matches and is looking forward to testing himself against the Germans.
He said: "It's a big game for me. Yeah, it's special for a Pole to face a German team, but it's more when the Polish national team face Germany.
"It's more that the game in Hamburg is the last chance for Celtic to play more games in Europe. I think it will be a great game.
ATMOSPHERE
"It's a big moment for me, my first game in Europe, but I think the better atmosphere is Celtic Park. I don't think the atmosphere in Hamburg will be anything special.
"I expected a better team when Hamburg came. They are one of the top teams in the Bundesliga, but managed only two shots at Celtic Park, so anything is possible in this game."
In the other fixture in Group C Raid Vienna will be looking for revenge after losing 5-1 to Hapoel in Tel Aviv.
At the weekend Rapid won 1-0 at home to SV Ried while Hapoel won their derby match with Macabbi 1-0.
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