Sporting Lisbon 3 Everton 0 (Sporting win 4-2 on aggregate)
Everton manager David Moyes saw his side humbled in Lisbon for the second time this season and crash out of the Europa League in the process.
Holding a 2-1 advantage from the first leg and on the back of a superb victory against Manchester United, they were widely expected to complete the job in Portugal.
However, Sporting shrugged off their indifferent form to progress to the last 16 thanks to second half goals from Miguel Veloso, Pedro Mendes and substitute Matias Fernandez.
Everton were stunned just like they were last October when Benfica recorded a 5-0 victory.
Moyes was forced to field a weakened side then but most of his top players were available tonight.
Everton were given a chasing and goalkeeper Tim Howard was forced into action after just four minutes when Marat Izmailov cut inside.
The Russian cracked in a shot but Howard was equal to it and parried the ball to safety.
It was an early warning to Everton that Sporting were determined to turn this tie around after a string of indifferent results.
The home side had made a bright start and Liedson clipped his effort wide of the post in the 13th minute.
Sporting came within a whisker of taking the lead on the night when Phillipe Senderos, on loan from Arsenal, barged over Yannick Djalo on the edge of the area.
Skipper Joao Moutinho stepped forward and sent a sweet free-kick over Howard but saw his effort come back off the bar.
Liedson latched on to the rebound but snatched at his effort and it went wide.
This was a difficult spell for Moyes’ side who went into the match on a superb run of form after losing only two of their last 13 games in all competitions.
Then Veloso sent a shot into Howard’s body as Sporting maintained the momentum.
Everton woke out of their slumber a minute before half-time when Senderos found the net after getting on the end of a free-kick from Leighton Baines.
But Senderos’ effort from inside the area was ruled out for offside as the player raised his arm in celebration.
Senderos needed treatment three minutes into the second half after taking a knock in a challenge.
He looked in some difficulty following his back problem and Djalo strode forward in the 51st minute and sent a shot narrowly over the bar.
Senderos came off a minute later and was replaced by Phil Jagielka, making his first appearance since April.
Given the pressure Everton had been under it was a test of character for Jagielka, following his recovery from a knee ligament injury.
He was drafted in without any reserve matches under his belt. He had been scheduled for a game on Tuesday but it was postponed.
Sporting stepped up the pace and Howard did well to turn away a close range shot from Izmailov in the 58th minute.
Then the goalkeeper showed even better reflexes to turn over a rasping drive from Veloso.
Everton responded and Steven Pienaar saw his effort go narrowly over the bar before Sporting made the breakthrough.
Veloso got clear inside the six yard area and from an acute angle drove a shot beyond Howard and into the corner.
Sporting went ahead on aggregate in the 76th minute through former Rangers midfielder Mendes.
He got on the end of a cutback from Izmailov to find the corner with his effort, although it appeared to take a deflection off substitute Jack Rodwell.
Fernandez then added a third in stoppage time with a superb run and finish to complete a night of misery for Everton.