Connor McLaren put the hosts ahead, and while Ewan McNeil equalised for the visitors in the first half, Elgin were rampant in the second as two Craig Gunn goals and a Mark Nicolson finish sent the Black and Whites top.
At the Broadwood Stadium, Clyde are now second in the league after a 4-2 home win against Annan Athletic, who started the afternoon top. Michael Bolochoweckyj put the home side ahead after just five minutes before David Gormley doubled the lead 10 minutes later.
Matt Flynn pulled a goal back for the visitors just over midway through the first half, but goals from Scott Linton and David Marsh secured a reasonably comfortable win before an Annan trialist grabbed a consolation four minutes from time.
Elsewhere, Queen's Park moved up to 7th after their 5-1 demolition of East Stirlingshire following finishes from Ryan McGeever, Chris Duggan, Paul Woods, David Galt and John Carter, with the away side's consolation coming courtesy of Alistair Roy.
Results in full: Clyde 4-2 Annan, East Fife 0-1 Arbroath, Elgin City 4-1 Berwick, Queen's Park 5-1 East Stirling, Stirling 1-0 Montrose.