Marsh was caught well short of his crease at the non-striker's end when he was called for a quick single in just the fifth over the Western Australia's innings at the SCG.
The dangerous left-hander had made a cautious start with seven runs from 17 deliveries before his mix-up to cost his valuable wicket.
He was run-out with a direct hit throw from borderline Australian all-rounder Steve Smith caught Marsh well out of his ground after he had been called into the run with opening batting partner Liam Davis.
After their 50 overs and being sent into bat on a grassy strip, WA had accumulated a formidable 7-266.
Captain Adam Voges was unbeaten on 77 from just 82 balls with six fours.
New wicketkeeper-batsman Sam Whiteman put together a handy 74 from 103 deliveries with five boundaries and a six.
Recently retired international star Mike Hussey chipped in with a handy 30 in a 61-run stand with Voges for the fourth wicket.
New spinner Gurinda Sandhu with 3-64 and former Test seamer Doug Bollinger with 2-42 were the best of the home side bowlers.
Davis was the second Warriors wicket to fall for 39, in the 23rd over at 2-92.
Marsh, 29, was a standout hero in Perth's run into the lucrative Big Bash League grand final which won the fallen Test star a spot back in Australia's Twenty20 team for two games against Sri Lanka last weekend.
NSW management pulled a surprise selection move just before the start of play when top batsman-wicketkeeper Brad Haddin was withdrawn.
The bordlerline Australian squad member was rested from the domestic limited-overs clash in an effort to limit Haddin's workload with possible national team commitments as well as state duties in approaching days.
The Blues also have injury-savaged all-rounder Shane Watson returning from his latest calf strain problem.