Four-time world champions Germany suffered one of the biggest shocks of the 2026 FIFA World Cup after crashing out of the tournament following a dramatic 4-3 penalty shootout defeat to Paraguay in the Round of 32.

The South Americans produced a resilient display to hold one of the tournament favourites to a 1-1 draw after extra time before keeping their composure from the penalty spot to book a place in the Round of 16, while Germany endured the first World Cup penalty shootout defeat in the nation’s history.

The knockout encounter, played in Foxborough, Massachusetts, delivered 120 minutes of high drama before ending in heartbreak for Julian Nagelsmann’s side, whose World Cup campaign came to an abrupt end despite entering the match as overwhelming favourites.

Germany had enjoyed an impressive group-stage campaign, finishing top of Group E after emphatic victories over Curaçao and Côte d’Ivoire before advancing to the knockout phase as one of the tournament’s strongest teams.

Paraguay, meanwhile, entered the Round of 32 after finishing second in Group D, having battled through a difficult group that also featured hosts the United States, Australia and Türkiye.

Despite Germany dominating large spells of possession, it was Paraguay who struck first.

Just three minutes before halftime, Julio Enciso gave the South Americans a dream lead, finishing clinically in the 42nd minute to silence the German supporters and hand Paraguay a crucial advantage heading into the interval.

Germany responded positively after the restart and eventually found the equaliser through Kai Havertz.

The forward restored parity in the 54th minute, breathing new life into Germany’s hopes as the four-time world champions pushed relentlessly for a winner.

Both teams created opportunities during the remainder of normal time, but neither could find the decisive breakthrough, sending the contest into extra time.

The drama intensified during the additional 30 minutes. Germany thought they had completed the comeback when defender Jonathan Tah headed the ball into the net late in extra time.

However, celebrations were cut short after the Video Assistant Referee intervened, with the goal controversially ruled out following a review, ensuring the match would be decided by penalties.

The shootout itself produced another dramatic twist. Paraguay appeared to have the contest won on two separate occasions but failed to convert the kicks that would have sealed qualification, allowing Germany to remain alive.

However, the momentum shifted decisively when Kai Havertz, Nick Woltemade and Jonathan Tah all failed to convert their penalties for Germany.

Tah’s effort sailed over the crossbar, handing Paraguay defender José Canale the opportunity to settle the contest.

The defender made no mistake, calmly converting the decisive penalty to spark jubilant celebrations among the Paraguayan players and supporters as one of the tournament’s biggest upsets became reality.