Paraguay pulled off one of the biggest upsets of the 2026 FIFA World Cup, knocking out four-time champions Germany 4-3 on penalties after a 1-1 draw to book a place in the quarter-finals.

Despite being ranked 31 places below Germany in the FIFA world rankings, Paraguay held their nerve in a dramatic penalty shootout to inflict Germany’s first-ever World Cup defeat on penalties.

Julio Enciso stunned the Germans by giving Paraguay a surprise first-half lead before Kai Havertz restored parity with a well-taken header to send the contest into extra time.

Germany thought they had found a winner when Jonathan Tah headed home, but the goal was ruled out following a controversial VAR review, leaving the tie deadlocked and forcing a penalty shootout.

Paraguay showed remarkable composure from the spot, edging Germany 4-3 in sudden death to secure their first-ever victory in a World Cup knockout match.

The victory extends Paraguay’s impressive record in World Cup shootouts, as they joined Croatia as the only nations to have contested multiple penalty shootouts at the tournament without suffering defeat.

The result also raises serious questions for Germany and head coach Julian Nagelsmann, whose side struggled to break down Paraguay’s disciplined defensive setup despite dominating possession.

While the disallowed Tah goal is likely to spark debate, Germany’s lack of creativity and cutting edge throughout the match ultimately proved costly.

Nagelsmann’s tactical decisions, particularly his substitutions during extra time, are also expected to come under scrutiny following the shock elimination.

Paraguay will now face either France or Sweden in Philadelphia on July 4, with a place in the World Cup semi-finals at stake, while Germany head home after one of the tournament’s biggest surprises.