Lancing went into the game aiming to reach the third qualifying round for the first time since 1967. Lancers were reinstated into the competition after Phoenix Sports fielded an ineligible player in their 3-0 first qualifying round replay win over Lancing last month.
Lancers had earned £11,140 prize money from their cup run and drew 1-1 at Hendon in midweek to force the replay. Hendon banked another £9,000 with their win this afternoon.
Evo-Stik League Premier Division South high-flyers Hendon included former Aldershot, Shrewsbury and Plymouth striker Marvin Morgan and he partnered Ricardo German, who began his career at Chesterfield, up top.
In front of a large crowd, German had the first effort of note but his toe-poked effort took a slight deflection and was comfortably saved by Lancing keeper Tyler D'Cruz. Morgan then had a close-range shot from a tight angle pushed away by D'Cruz when the forward met Lee Chappell's free kick.
Hendon's pressure paid off on 13 minutes when a corner fell invitingly for Stephane Ngamvoulou to sweep the ball home from ten yards.
After an even period, Hendon moved 2-0 ahead just past the half-hour mark. Lancing full-back Adam Willard was harshly adjudged to have handled Howard Hall's cross in the penalty area, with Lancers player-manager Mark Pulling booked for his protests.
German kept his cool to send D'Cruz the wrong way from the spot and double the away side's lead.
D'Cruz produced an excellent reaction save to push away Ngamvoulou's cross-shot on 39 minutes and also kept out Cole Brown's fierce strike.
Lancing striker Jack Langford sent a shot straight at Hendon keeper Danny Boness on the stroke of half-time as the visitors took a two-goal lead into the break.
Langford's pace caused Hendon problems throughout and the forward sent a shot into the side netting in the early moments of the second half.
Hendon added a third on 49 minutes when former Queens Park Rangers youngster Gianni Crichlow, who had been on the pitch just a matter of seconds, burst forward and fired home off the far post.
Lancing responded positively and Langford was denied by the outstetched foot of Boness.
Crichlow had another shot saved by D'Cruz after a mazy run, before Hendon added a fourth when Shaquille Hippolyte-Patrick played a one-two with Cole Brown and rifled the ball home into the roof of the net.
The young Lancers side kept going and Liam Hendy had a header saved from Pulling's corner, before Brown's low deflected shot went behind off a post at the other end.
The impressive D'Cruz then produced two stunning saves to twice deny Brown, before Lancers' Jack Webber had a late shot well saved and Matt Daniel had a header pushed away by Boness as it finished 4-0.
LANCING: D'Cruz; Willard (Webber 67), Di Arienzo, Bygraves, Tighe, Pittock, Tredrea (Momah 58), Saunders (Hendy 70), Langford, Pulling, Daniel. Subs: Meeres, Gardner-Lowe, Wood, Gunn.
HENDON: Boness; Hall, Chappell, Tingey, Jonas, Dombaxe, Ngamvoulou (Mbengui 54), Hippolyte-Patrick, German (Hunte 60), Morgan (Crichlow 48), Brown. Subs: Mitchell, Griffith, Alexander, Murphy.