Brazil had 26 shots on target but could not find a way past 10-man Paraguay during 90 minutes
Gabriel Jesus scored the decisive spot-kick to send Brazil through to the Copa America semi-finals as they overcame 10-man Paraguay 4-3 on penalties.
The Manchester City striker spared the blushes of Liverpool’s Roberto Firmino, who blasted his effort from 12 yards wide.
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Brazil gained a measure of revenge over Paraguay, having lost to them on penalties in both 2011 and 2015 and will hope to win the tournament for the first time since 2007.
The host dominated much of the action, recording 70% possession and having 26 shots at Paraguay’s goal, while their opponents had West Ham’s Fabian Balbuena sent off after 58 minutes for a foul on Firmino.
But Brazil failed to break them down and, with extra time only set to be used if needed in the Copa America final, the tie went to penalties.
Liverpool goalkeeper Alisson Becker saved the first spot-kick from Gustavo Gomez, only for his Reds teammate Firmino to fire wide.
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Paraguay winger Derlis Gonzalez, though, also then failed to hit the target, which left Jesus to slot in the winning penalty, as Brazil progressed 4-3 in the shoot-out.
“Unfortunately in the last game, I could not finish the penalty,” Jesus said.
“I was upset, sad, p***** off with myself, I did not hit it my way. I was confident today, hitting my way I have more of a chance to score.”
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The eight-time winners will now face either Argentina or Venezuela, who play on Friday, in the semi-finals.
In the other two quarter-finals, Colombia play Chile and Uruguay take on Peru on Saturday.