Germany's return to the World Cup knockout stages for the first time in 12 years has ended in bitter disappointment. Julian Nagelsmann's side suffered a premature exit in the Round of 32, falling to Paraguay in a dramatic penalty shootout—the first time the nation has ever lost a World Cup shootout.

Considered overwhelming favourites ahead of kickoff, Germany produced an uncharacteristically sluggish and toothless performance. While Nagelsmann's men predictably dominated possession, their build-up play lacked urgency and creative spark in the final third. They paid a heavy price for their passivity in the 41st minute when Julio Enciso rose highest to head home a precise Matías Galarza cross from the right flank.

The introductions of Leon Goretzka and Jamal Musiala injected some much-needed life into the German midfield after the interval, and the tactical adjustments yielded an equaliser in the 64th minute. Florian Wirtz delivered a pinpoint cross from the left wing, allowing Kai Havertz to glance a delicate header into the far bottom corner. However, the equaliser failed to galvanise Germany into sustained pressure, though they did manage to find the net during extra time. However, a lengthy VAR review saw the goal chalked off after Waldemar Anton was judged to have fouled the Paraguayan goalkeeper.

Germany immediately found themselves on the brink of elimination during the shootout, but veteran goalkeeper Manuel Neuer handed them a lifeline by saving Antonio Sanabria’s fifth penalty. It proved to be a temporary reprieve. Jonathan Tah fired the subsequent sudden-death spot-kick high into the stands, leaving José Canale to calmly convert and shatter Nagelsmann’s World Cup ambitions.

Paraguay progress to the Round of 16 in dramatic fashion, where they will face the winner of the highly anticipated clash between France and Sweden.

World Cup 2026

Germany - Paraguay 1:1 (0:1), shoot-out 3:4
Goals: Enciso, 42 (0:1); Havertz, 54 (1:1)

Germany: Neuer; Brown; Rudiger (Thiaw, 110); Tah J.; Pavlovic Al. (Anton, 79); Kimmich; Havertz; Wirtz (Amiri N., 110); Sane L. (Woltemade, 88); Nmecha F.; Undav (Musiala, 63)
Substitution: Goretzka (from 46); Musiala (from 63); Anton (from 79); Woltemade (from 88); Amiri N. (from 110); Thiaw (from 110)
Bench: Baumann; Nübel; Groß; Ouedraogo; Leweling; Stiller; Raum D.; Beier M.
Yellow Cards: Havertz 106; Musiala 115

Paraguay: Gill; Cáceres (Ojeda B., 100); Canale; Gómez Gu.; Alonso J. (Balbuena, 122); Bobadilla (Sanabria, 100); Galarza; Cubas; Almirón (Velázquez G., 91); Enciso (Mauricio, 57); Ávalos (Caballero, 57)
Substitution: Mauricio (from 57); Caballero (from 57); Velázquez G. (from 91); Ojeda B. (from 100); Sanabria (from 100); Balbuena (from 122)
Bench: Fernández G.; Olveira; Maidana A.; Alderete; Sosa Ramón; Kaku; Arce Al.; Pitta
Yellow Cards: Cubas 65; Galarza 117