Costa Rica scored two early goals to beat Paraguay 2-1 in their final Copa America Group D match on Tuesday but failed to move into the quarter-finals after finishing third following Brazil's 1-1 draw with Colombia.
Colombia finished as group winners with seven points while Brazil also advanced as runners-up with five. Costa Rica return home with four points while Paraguay exit after three losses.
"This was a very tough group. We were playing against Brazil and Colombia, two of the four favourites to win the Copa," Costa Rica coach Gustavo Alfaro told reporters.
"We had our strengths, our achievements and our mistakes, but we grew and we're analysing the performance rather than the results.
"The important thing is that we learn and that this was a very short tournament that we had to seize to the fullest."
Costa Rica needed results to go their way along with a big swing in goal difference to qualify and they wasted no time getting on the board when skipper Francisco Calvo and Josimar Alcocer made it 2-0 inside seven minutes.
Calvo headed home from the edge of the six-yard box in the third minute while 19-year-old Alcocer powered past several players before pulling the trigger from well outside the box to beat the keeper.
But Paraguay came to life in the second half and Costa Rica's hopes of qualifying dwindled 10 minutes after the restart when Ramon Sosa scored his first goal for his country.
Costa Rica's defence could do nothing as Mathias Villasanti dribbled into the box and set up Sosa, who blasted the ball into the top corner past the outstretched hand of goalkeeper Patrick Sequeira.
Costa Rica nearly conceded again from a corner in added time, the ball deflecting off Fabian Balbuena's head to Angel Romero but his shot failed to make it past the fingertips of Sequeira.
It marked the first time since 1925 that Paraguay had lost all of their group matches.
"It was a bad tournament, a bad performance," coach Daniel Garnero said.
Speaking about his future, he added: "I am here because the association requested my services and if they don't want me to continue, that is their decision. I'll have to discuss that with them."