Morocco goalkeeper Yassine Bounou made the crucial save to block the Netherlands’ fifth penalty from Crysencio Summerville, before striker Ismael Saibari stepped up to blast home the winning spot-kick that sealed a 3-2 shootout win.
The victory sends Morocco into a last 16 clash with Canada in Houston on Saturday.
An enthralling match had gone to extra time after Issa Diop had glanced in a dramatic equaliser for Morocco in the first minute of stoppage time as the Netherlands closed in on victory.
The Dutch had taken the lead midway through the second half with a goal from Cody Gakpo, playing just days after his partner had confirmed the death of the couple’s unborn son.
Liverpool forward Gakpo sank to the turf and appeared overcome with emotion as he was surrounded by team-mates in a prolonged group embrace.
But Morocco forced extra time when an unmarked Diop headed home from substitute Chemsdine Talbi’s cross in injury time.
Morocco had created the better chances of a fractious encounter, which saw players from both sides flying into tackles to test the patience of Brazilian referee Wilton Sampaio.
The Atlas Lions almost took the lead on 20 minutes when Neil al-Aynaoui glanced an Achraf Hakimi corner goalwards only to be denied by a superb reflex save from Netherlands goalkeeper Bart Verbruggen.
Verbruggen was pressed into action moments later, this time doing well to tip a vicious strike from Hakimi over the bar.
The fierce nature of the contest was on full display midway through the half when Saibari was lucky to escape sanction after elbowing Jan Paul van Hecke in the face.
The Dutch continued to enjoy plenty of possession, but were unable to convert it into goalscoring chances.
Their best effort came on 44 minutes when Tottenham’s Micky van de Ven uncorked a ferocious shot from the edge of the area that was tipped over by Bounou.
Van Hecke continued to find himself in the thick of the action, and after bloodying his head in a collision in the penalty area, made his presence felt with a crunching tackle that upended el-Aynaoui just before half-time.
As the half ended Saibari just failed to connect with a cross that flashed across the Dutch goal before going behind.
The drama continued into an end-to-end second half, but appeared to have tilted in the Netherlands’ favour when coach Ronald Koeman brought on forward Wout Weghorst in a flurry of substitutions after the hydration break.
Weghorst made an immediate impact flicking on a long ball to send Summerville bearing in on goal.
Summerville crossed to Gakpo, who hurled himself at the ball to score.
The Netherlands, superbly marshalled by Gakpo’s Liverpool team-mate Virgil van Dijk, appeared to be heading for victory, but Diop’s late header sent it to extra-time.
Morocco looked to have made the breakthrough when Soufiane Rahimi went through on goal in the 96th minute, only to be denied by a jaw-dropping save from Verbruggen.
The Netherlands held on for penalties but despite Morocco missing their first when El-Aynaoui hit the bar, the north Africans recovered to win. (AFP)
