Germany's World Cup campaign came to a stunning end on Monday as Paraguay eliminated the four-time champions on penalties in the last 32, dealing one of the biggest upsets of the tournament so far.

The match at Boston Stadium — attended by 63,945 fans — finished 1-1 after extra time, with Paraguay advancing 4-3 in the shoot-out to set up a last-16 meeting with either France or Sweden.

Enciso's opener and Havertz's reply

Paraguay drew first blood when Julio Enciso headed home in the first half to give the underdogs a deserved lead. Germany had dominated possession — registering 78 percent of the ball — yet failed to register a single shot on target in the opening 45 minutes, a damning reflection of Julian Nagelsmann's side's toothless display.

Kai Havertz eventually pulled Germany level with a glancing header of his own, and the game drifted into extra time with both sides unable to find a winner.

VAR controversy mars extra time

Germany came agonisingly close to a late winner in extra time when Jonathan Tah powered home a header from a corner, only for VAR to rule it out for a foul by Waldemar Anton on Paraguay goalkeeper Orlando Gill — a decision that left Nagelsmann's players furious.

Shoot-out heartbreak

In the penalty shoot-out, Havertz saw his spot-kick saved by Gill, and Newcastle United's Nick Woltemade suffered the same fate shortly after. Tah then blazed his effort over the crossbar, handing Paraguay the win. It marked the first time Germany had ever lost a World Cup penalty shoot-out, having previously won all four of their shoot-out encounters in the competition.

Paraguay had their own nervous moments in the shoot-out's closing stages — Antonio Sanabria sent his effort wide, and Manuel Neuer denied Fabian Balbuena — but Jose Canale ultimately converted the decisive kick to seal a historic result.

Germany have not won a World Cup knockout match since lifting the trophy in Brazil in 2014. Paraguay now face France or Sweden in the round of 16.