This is the first time Egypt has played in the round of 16 of the World Cup, where the winner between Argentina and Cape Verde awaits.
The score was 1-1 after full time and extra time, and Egypt won the shootout in the fourth round after scoring all four of its penalties, while Australia missed two.
Mohamed Salah scored Egypt's third penalty with a "Panenka" and shed tears of joy after advancing.
Australia changed goalkeepers for the penalty shootout and opted for Mathew Ryan instead of Patrick Beach, who had to leave in the 119th minute.
That didn't help.
Egypt took the lead through Emam Ashour in the 13th minute - but another Egyptian goal equalized.
Defender Mohamed Hany was the last man on the ball when Australia tied the score at 1-1 in the 55th minute. Hany thus made history as the first player to score two own goals in the same World Cup, according to AP.
