Paraguay produced one of the biggest upsets of the 2026 FIFA World Cup by eliminating four-time champions Germany in a dramatic penalty shootout to book a place in the round of 16.

The South Americans prevailed 4-3 on penalties after the match ended 1-1 following extra time, sending Germany crashing out of the tournament at the first knockout stage.

Paraguay took the lead late in the first half through Julio Enciso, but Germany responded seven minutes into the second half when Kai Havertz restored parity.

Both teams created chances to win the contest, but Paraguay’s resolute defending and outstanding goalkeeping kept the Germans at bay.

Germany appeared to have snatched victory during extra time when Jonathan Tah found the net, only for the goal to be ruled out after a Video Assistant Referee (VAR) review detected a foul in the build-up.

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With neither side able to find a winner after 120 minutes, the tie was decided by penalties.

Paraguay goalkeeper Orlando Gill emerged as the hero, making crucial saves during the shootout before José Canale converted the decisive penalty to seal a famous victory.

The result sends Paraguay into the round of 16, where they will continue their bid for a first World Cup title.

For Germany, the defeat marks another disappointing World Cup campaign as the four-time champions bow out much earlier than expected despite entering the tournament among the favourites.