Four-time World Cup winners Germany have been knocked out of the 2026 tournament in stunning fashion, losing 4-3 on penalties to Paraguay in the last 32 after a 1-1 draw that included a hugely controversial VAR decision.

How the match unfolded

Paraguay took a shock lead through Julio Enciso, sending South American fans into raptures. Germany struggled to break down a disciplined Paraguayan defence for much of the match.

Kai Havertz eventually levelled with a header, but Germany could not find a winner before the end of normal time. The match went to extra time, where the biggest talking point of the game arrived.

The VAR controversy

Jonathan Tah thought he had scored the goal that would send Germany through. But after a lengthy VAR review, the goal was disallowed for an alleged foul by Waldemar Anton on Paraguay goalkeeper Orlando Gill.

The decision sparked outrage across the football world. Former England striker Alan Shearer called it “a joke,” while ex-Liverpool manager Jurgen Klopp described it as a “terrible decision.” Many felt Germany had been robbed of a legitimate goal at a crucial moment.

Penalty shootout heartbreak

With no further goals in extra time, the match went to penalties. Germany, who had never lost a World Cup penalty shootout in their history, were expected to have the psychological edge.

Instead, it was Jonathan Tah — the same player whose goal had been ruled out — who blazed his penalty over the crossbar in sudden death. Jose Canale stepped up for Paraguay and calmly slotted home to seal a famous victory.

Paraguay’s players collapsed in tears of joy. It was one of the biggest upsets in World Cup history.

What went wrong for Germany?

Germany’s tournament had not been convincing even before this defeat. The team looked short of ideas in attack and overly reliant on individual moments of brilliance rather than a cohesive system.

Questions are now being asked about Julian Nagelsmann’s future as head coach. The former Bayern Munich manager was brought in to restore Germany to the top of world football, but this early exit represents a significant failure.

Some pundits have suggested Germany have become too predictable. As one analyst put it: “Germany play one way — and it doesn’t work anymore.”

Paraguay’s remarkable run

For Paraguay, this result represents one of the greatest achievements in their footballing history. The South American side defended with courage and composure, taking their chance when it came and holding their nerve in the shootout.

Goalkeeper Orlando Gill was outstanding, and the team’s collective spirit proved too much for a disjointed German side.

What happens next

Germany head home with serious questions to answer. The German Football Association will need to decide whether Nagelsmann remains the right man to lead the team into future tournaments.

Paraguay advance to the last 16, where they will look to continue their fairytale run. After this performance, no team will want to face them.