Adams was soundly defeated Sunday in the Liberal nomination battle in the Toronto riding of Eglinton–Lawrence, falling to lawyer and riding association executive Marco Mendicino, the only other candidate in a hotly contested race.
Party officials said Mendicino garnered 1,936 votes to about 1,100 for Adams.
Adams, who crossed the floor to the Liberals in February and currently represents the riding of Mississauga—Brampton South, west of Toronto, ran afoul of the Conservatives as she fought for the party's nomination last year in the new riding of Oakville–North Burlington.
She and her fiancé — former top Conservative Party official Dimitri Soudas — were accused of breaking the rules by paying for memberships, allegations they denied.
Sunday's result in Eglinton–Lawrence means Mendicino, 42, a married father of two, will now face off against Finance Minister Joe Oliver in the election, which must be held no later than Oct. 19.
"There's no booing for Eve," he said in a victory speech.
Adams had been welcomed personally into the fold by Liberal Leader Justin Trudeau, whose warm embrace of her angered some party members.
Some of that disaffection was on display Sunday as Adams, who does not live in the constituency, made a final, unsuccessful appeal to riding Liberals to let her carry their standard against Oliver.
She had barely begun her pitch to about 150 members in a steamy high school auditorium when a man stood up in the audience.
"I urge you today for the sake of the party, if you love the Liberal Party, please withdraw," he said.
Adams ignored the heckle.