Australia 17 Ireland 16
A week can be a long time in World Cup rugby. Less than seven days after pipping Argentina to a quarter-final berth by a single point, Ireland were denied by the same margin as Australia held on in a thrilling Pool A decider in Melbourne.
That the contest was easily the best of the World Cup so far will be of little consolation to the Irish, who gave everything but must now tackle the in-form French in next weekend's quarter-final.
Despite dominating the second-half and pinning the Wallbies in their own 22, Eddie O'Sullivan's side were unable to convert pressure into points.
David Humphreys, on as a late replacement for Ronan O'Gara, went agonisingly close with a late drop-goal attempt but Ireland may well rue the decision to cough up kickable penalties as they pressed for a late try.
Wallaby centre Elton Flatley kicked three penalties, while flanker George Smith crossed for their only try. Captain George Gregan also dropped a goal. Irish centre Brian O'Driscoll scored their only try and dropped a goal, while flyhalf Ronan O'Gara added eight points through a conversion and two penalties.
The defending champions were put through the wringer by a determined, physical and aggressive Irish performance from the off as the match ebbed and flowed in the early stages.
With the prize of a last eight meeting with Scotland on offer, as opposed the daunting prospect of facing France, there was never going to be any quarter given in the Telstra Dome and the first score didn't arrive until the 10th minute when Gregan dropped a goal.
Smith then scored the opening try three minutes later when Wendell Sailor made two bursts down the right wing, before they swung it back left and Smith cantered over unopposed.
Flatley missed the conversion before O'Gara got Ireland on the board with a 16th-minute penalty, but Flatley restored the eight-point lead with his first penalty three minutes later.
Ireland were straining in defence but lifted their effort and stopped the Aussie momentum in its tracks. With Paul O'Connell excelling in the lineout - where he stole Australian ball for fun - and in the loose, Ireland began to mount serious attacks of their own.
Wood, in typically inspirational form, stormed his way through Gregan and the Wallaby defence. Eventually the Wallabies conceded under pressure and O'Gara stepped up to land the penalty.
After a promising start, nothing quite worked for Australia. Sailor was away down the left, but showing his old rugby league habits, ran infield instead of challenging Denis Hickie on the outside. The Irish swarmed in an turned it over.
When Australia opted to kick for touch, Ireland stole the lineout and the Wallabies then lost full-back Mat Rogers to the sin-bin for repeatedly slowing the ball down. He was not alone as Ireland's Shane Horgan was also dispatched for excessive use of the boot.
Flatley opened up a cushion of eight points after the interval, before O'Gara missed again - but Australia then lost their heads after a sensational exchange of quick-fire rugby. Ireland countered from a quick throw inside their own 22, Peter Stringer then dabbed a magnificent kick over the top and when Rogers attempted a quick throw and counter, Roff spilled the ball forward.
Prop Bill Young was then penalised for not binding correctly at the resultant scrum, just five metres out, Ireland capitalised and it was O'Driscoll who produced a moment of magic. Playing with the advantage Ireland kept probing until John Kelly slipped the ball outside to O'Driscoll and with just inches to spare he touched down.
The try was confirmed by the television official and when O'Gara landed the conversion there was just a point in it. Australia hit back strongly, but squandered a four-on-one overlap when Phil Waugh was forced to field a pass round his ankles and had to settle for a third Flatley penalty.
Ireland were heaping the pressure on and repeatedly spurned the opportunity for a kick at goal in search of tries - but the Australian defence held firm.
When Brendan Cannon was penalised for diving over the top of Gleeson, the Irish again opted for a scrum and after snuffing out an Australian counter-attack, O'Driscoll landed the drop goal.
It was back to a one-point game, but Ireland's last throw of the dice was an attempted drop goal from David Humphreys which sailed wide, and with it went the game.
Afterwards, a visibly shattered Keith Wood admitted Ireland's huge disappointment at taking nothing from the contest but stressed Ireland must now switch their focus to beating France.
"We are obviously disappointed but not too disappointed because we are in the quarter-final in a week's time," the Ireland captain told reporters. "And we may get the chance to reap revenge because we could meet [Australia] again."
"We were very close to having it," he added. "We are not happy because we came here to win. It is the first time we have played in conditions anywhere near vaguely normal."
Additional reporting: Reuters / PA
Ireland- 15-Girvan Dempsey; 14-Shane Horgan, 13-Brian O'Driscoll, 12-Kevin Maggs (19-Eric Miller 57 blood bin, Maggs back on 62), 11-Denis Hickie (22-John Kelly 40); 10-Ronan O'Gara (21-David Humphreys 71), 9-Peter Stringer; 8-Anthony Foley (19-Eric Miller 73), 7-Keith Gleeson, 6-Simon Easterby, 5-Paul O'Connell (18-Donnacha O'Callaghan 75), 4-Malcolm O'Kelly (18-Donnacha O'Callaghan 54, O'Kelly back on 60), 3-John Hayes, 2-Keith Wood (captain), 1-Reggie Corrigan (17-Marcus Horan 68).
Australia- 15-Mat Rogers; 14-Wendell Sailor, 13-Matthew Burke (22-Lote Tuqiri 64), 12-Elton Flatley, 11-Joe Roff; 10-Stephen Larkham (21-Matt Giteau 68), 9-George Gregan (captain); 8-David Lyons (19-Matt Cockbain 60), 7-Phil Waugh, 6-George Smith, 5-Nathan Sharpe, 4-David Giffin (18-Daniel Vickerman 64), 3-Ben Darwin (17-Al Baxter 51), 2-Brendan Cannon (16-Jeremy Paul 73), 1-Bill Young.
Yellow cards: Australia - Rogers 40. Ireland - Horgan 40.