Paraguay have produced one of the greatest upsets in World Cup history, eliminating four-time world champions Germany on penalties in the round of 32. The South American side held Germany to a 1-1 draw through 120 minutes at Gillette Stadium in Foxborough, Massachusetts, before goalkeeper Orlando Gill saved two spot kicks to help secure a 4-3 shootout victory — sending a nation into jubilation and a footballing giant home in shame.

Julio Enciso gave Paraguay a shock lead in the 42nd minute, heading home a precise cross from Matias Galarza after Germany lost their defensive shape from a recycled corner. It was, remarkably, Paraguay's first goal in the World Cup knockout stage across their previous five such appearances. Kai Havertz levelled nine minutes into the second half with a glancing header from a Florian Wirtz cross, and Germany's numerical dominance — 75 percent possession, 21 shots to Paraguay's seven — created a steady sense of inevitability about the outcome. Yet Gill denied Havertz again with a sharp claw-away late in normal time, forcing extra time. Germany thought they had won it when Jonathan Tah headed home in extra time, but VAR ruled the goal out for a foul on Gill. The match went to penalties, where Gill saved from Havertz and Nick Woltemade, Tah blazed over the bar, and Jose Canale struck the decisive kick.

Paraguay's victory was built on a defensive masterclass orchestrated by coach Gustavo Alfaro, who had faced fierce criticism — including from goalkeeping legend Jose Luis Chilavert — for overly cautious tactics during the group stage, when the team lost 4-1 to co-hosts the United States and scored just twice in three matches. But Alfaro's resolute backline held firm even after losing influential attacker Enciso to injury, and even without injured centre-half Omar Alderete. "Today was a match in which we had to be Paraguay more than ever," said captain Gustavo Gomez. Gill, who had already saved decisive penalties in Argentine club football with San Lorenzo, was measured in his praise of the collective effort. "We had to analyse every player, every detail," he said. "We managed to hold on until the 120th minute, and luck was on our side during the shootout."

The scale of the celebration in Paraguay reflected the enormity of the achievement. President Santiago Peña declared Tuesday 30 June a national holiday by presidential decree, posting on social media: "Today, an entire country celebrates — the victory of a team that represents the deepest part of our identity: the grit, the faith, and the strength of people who never give up." Paraguay became the second South American country to receive a World Cup-related national holiday at this tournament, after Ecuador did the same following a group-stage win over Germany. Alfaro embraced the moment: "This is the magic of football. Every Paraguayan should enjoy this."

For Germany, the exit marks a third consecutive humiliating early departure from a World Cup, extending a painful run since their 2014 title in Brazil. Coach Julian Nagelsmann, who has a contract running to the 2028 European Championship, said he wanted to continue despite the result, but acknowledged the scrutiny he will face. "It is 11 or 12 years, and we have come up short," he admitted. "It's not enough for German football." Midfielder Nadiem Amiri pointed to the squad's youth — including Jamal Musiala and Florian Wirtz — as reasons for long-term optimism, but conceded the moment was too raw for comfort. Paraguay now face the prospect of a round-of-16 meeting with France, should the French beat Sweden, a daunting but not unthinkable challenge for a side that has already defied every expectation.