Warne returned to cricket last week after his 12-month doping ban and on Tuesday was the first time he had bowled in a first-class game since December 1, 2002.
Victoria resumed at 312 for one and lost nine wickets for 176 after Matthew Elliott and Brad Hodge were out in successive overs during the first half hour. Elliott top-scored with 166 and Hodge made 121.
In Brisbane, England-bound Stuart Law fought back tears as he delivered a farewell Gabba knock to remember. The 35-year-old almost broke down as he notched a record-equalling 24th Shield century to breathe new life into Queensland's crucial clash against Western Australia.
In his final first-class game in Brisbane, Law peeled off a magnificent 126 not out to dominate an unbroken 222-run stand with Clinton Perren (82 not out) and give the Bulls a glimmer of hope going into Wednesday's final day.
Giving up a 161-run first-innings deficit, Queensland (222 for 1) lead by a mere 61 runs but can set up a Limited-Overs run-chase on a wearing pitch.
New South Wales left-arm paceman Nathan Bracken will be closely monitored by Australian selector David Boon against South Australia at the Sydney Cricket Ground, where visiting skipper Darren Lehmann will also continue his late push for inclusion in the Test squad to tour Sri Lanka.
South Australia will resume on 9 for two after the Blues, who made 350 for nine declared highlighted by Greg Mail's patient 128 and Shaun Tait's explosive 5-85.
NSW captain Steve Waugh's late declaration paid massive dividends. The Redbacks faced four overs before stumps with disastrous consequences as Matthew Nicholson and Bracken ripped through Ben Cameron and Graham Manou respectively for ducks.
Mark Waugh bids adieu