Germany crashed out of the World Cup at the hands of Paraguay in the last 32 after losing 4-3 on penalties following a 1-1 draw in Foxborough on Monday.
It marks the first time that Germany have ever lost a penalty shootout at a World Cup.
Julio Enciso headed Paraguay into a shock lead before half-time, but Kai Havertz levelled for Germany on 54 minutes with his third goal of the tournament.
Jonathan Tah saw a goal disallowed after a VAR review in extra time, before Paraguay held on to shock Germany in a wild, nerve-jangling shootout as the momentum swung back and forth.
Paraguay goalkeeper Orlando Gill saved from Havertz and Nick Woltemade, but his teammates blew two chances to win it before Jose Canale blasted in the winning spot-kick after Tah had blazed his effort over the bar.
It marked another premature exit for Germany, who were playing in their first knockout-stage appearance since winning the 2014 World Cup.
Paraguay celebrated arguably their greatest win at the tournament, but they face the daunting prospect of running into an in-form France next, should Les Bleus beat Sweden.
Gill described the victory as “an immense thrill”.
“We managed to hold on. We opened the scoring, they equalised, but then we managed to keep it up. Obviously, we analysed every player and every detail of the penalty takers,” he said.
“Thank God I was able to save two penalties. This is a privilege; we eliminated a champion. This is dedicated to all Paraguayans.”
Julian Nagelsmann handed Deniz Undav his first start of the tournament after the Stuttgart striker scored three times in the opening two games as a substitute.
He came in for Jamal Musiala as Nathaniel Brown returned at left-back, having missed the Ecuador loss as a precaution due to a minor injury.
Miguel Almiron was recalled by Paraguay following a one-match ban after becoming the first player to be sent off for covering his mouth during an on-field confrontation under new FIFA rules.