Panama upset the United States, winning their CONCACAF Gold Cup semi-final in San Diego on Wednesday 5-4 on penalties after the game ended 1-1 after extra-time.
Panama, who have never won the Gold Cup, will face the winners of Wednesday's other semi-final between Jamaica and Mexico.
The USA started brightly, in the late afternoon Californian sunshine, with Cade Cowell hitting the post in the first minute.
But Panama, who had the better of the goal-less 90 minutes of regulation time, had an effort from Edgar Barcenas in the 29th ruled out for offside.
American goalkeeper Matt Turner had to be alert in the 53rd minute to keep out a header from Ismael Diaz after a cross from Barcenas.
Brandon Vazquez, given a start after three goals in the tournament as a substitute, then missed a good opportunity, firing high from close range after good work from Cowell.
There was drama in stoppage time, though, when Diaz had the ball in the net but was flagged for offside. Panama claimed that Djordje Mihailovic had handled the ball but VAR found nothing and backed the offside call.
The USA had needed extra-time and penalties to get past Canada in their quarter-final, but they were short of creativity against a determined Panama.
The Canalmen grabbed the lead in the ninth minute of the first period of extra-time, when Adalberto Carrasquilla lofted the ball over the top and Ivan Anderson went round the out-rushing Turner and slotted into the unguarded gaol.
But six minutes later, the USA levelled though a Jesus Ferreira volley after Jordan Morris had headed down a long ball into the box.
With both sides tiring in the heat, the game went to the shoot-out and Ferreira went first and saw his effort saved by Panama keeper Orlando Mosquera
But the US were able to level up when Cristian Martinez's weak effort was saved by Turner.
There was an unsavory moment when US defender Matt Miazga, after converting his kick, shouted in the face of Cecilio Waterman as he walked up to the spot but the Panama forward kept his cool and slotted home.
That kick took the contest into sudden death and Mosquera was the hero, diving to save Cristian Rolden's effort.
That left Carrasquilla needing to convert for victory and the midfielder, one of the player's of the tournament so far, made no mistake to set off the celebrations for the Central Americans.
Panama have reached the Gold Cup final twice before, losing to the USA n 2005 and 2013.
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