The Matildas were roared on by a home crowd of 75,000 fans, but were unable to produce fairytale story, falling to a 3-1 defeat to the Lionesses.
Sam Kerr had given the home side hope when she netted an equaliser in the second half thanks to a fantastic strike from 25-yards out to cancel Ella Toone's history making effort out.
However, it wasn't enough to stop the 2022 European champions, with Lauren Hemp and Alessia Russo pegging the Aussies back again to win 3-1 and book a place in the final.
Goalscorer Kerr, Arsenal's Caitlin Foord and other Matildas stars were visibly upset as the final whistle blew.
Some Aussies on the pitch were in tears and tried to console each other.
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Fans in the stands were gutted too, with plenty seen with their heads in their hands.
But the Aussie supporters in the ground and around the country will no doubt be proud of their side making history as co-hosts of the competition.
The Matildas made the semi-finals for the first time this summer, with their best run at the World Cup being to the last-16 which they achieved in 2019.