An extra-time rocket from Georgia Stanway saw the Lionesses come from behind to stun La Roja to continue their charge to glory.
The hosts looked to be heading out of the tournament following Esther Gonzalez's second-half opener but Ella Toone equalised with just six minutes remaining before Stanway popped up after the restart to win it.
England will now take on Sweden - who were made to wait until the dying seconds to secure a 1-0 win over Belgium at Leigh Sports Village.
England vs Sweden: talkSPORT commentary
This Women's Euro semi-final will take place on Tuesday, July 26.
Kick-off at Sheffield United's Bramall Lane is scheduled for 8pm.
talkSPORT's live coverage of England will begin an hour earlier at 7pm with Adrian Durham serving as presenter.
To tune in to talkSPORT or talkSPORT 2 through the website, click HERE for the live stream. You can also listen via the talkSPORT app, on DAB digital radio, through your smart speaker and on 1089 or 1053 AM.
England vs Sweden: Team news
England
Goalkeepers: Mary Earps (Manchester United), Hannah Hampton (Aston Villa), Ellie Roebuck (Manchester City)
Defenders: Millie Bright (Chelsea), Lucy Bronze (unattached), Jess Carter (Chelsea), Rachel Daly (Houston Dash), Alex Greenwood (Manchester City), Demi Stokes (Manchester City), Lotte Wubben-Moy (Arsenal)
Midfielders: Fran Kirby (Chelsea), Jill Scott (unattached), Ella Toone (Manchester United), Georgia Stanway (Bayern Munich), Keira Walsh (Manchester City), Leah Williamson (Arsenal)
Forwards: Beth England (Chelsea), Lauren Hemp (Manchester City), Chloe Kelly (Manchester City), Beth Mead (Arsenal), Nikita Parris (Arsenal), Alessia Russo (Manchester United), Ellen White (Manchester City)
Sweden
Goalkeepers: Jennifer Falk (Hacken), Hedvig Lindahl (Atletico Madrid), Zecira Musovic (Chelsea)
Defenders: Magdalena Eriksson (Chelsea), Hanna Glas (Bayern Munich), Jonna Andersson (Hammarby), Nathalie Bjorn (Everton), Amanda Ilestedt (Paris Saint-Germain), Emma Kullberg (Brighton), Amanda Nilden (Juventus), Linda Sembrant (Juventus)
Midfielders: Caroline Seger (Rosengard), Filippa Angeldahl (Manchester City), Hanna Bennison (Everton), Kosovare Asllani (Real Madrid), Elin Rubensson (Hacken), Johanna Rytting Kaneryd (Hacken)
Forwards: Lina Hurtig (Juventus), Fridolina Rolfo (Barcelona), Stina Blackstenius (Arsenal), Sofia Jakobsson (San Diego Wave), Rebecka Blomqvist (Wolfsburg), Olivia Schough (Rosengard)
England vs Sweden: What has been said?
Kiera Walsh: "When we pulled up on the coach, the fans were outside and, for me, it's when we're singing the national anthem, you can hear it echoing around the stadium and it's such a special feeling and one we've not experienced before because we've not had a home tournament.
"It does give you that little bit of an extra push.
"Of course every tournament is important but having the home crowd behind you is definitely special and I hope we can continue doing it for the semi final."