On their home field, Chelsea was unable to hold off Everton on penalty kicks, ending the Blues' chances of winning an FA Cup.
After a 1-1 draw, the two sides went to penalty kicks, with Phil Neville driving home the winner, after an Ashley Cole miss.
Frank Lampard scored in overtime in the 104th minute, but Everton answered back with a goal from Leighton Baines in the dying moments of the match. Baines, however, was the only Everton player to not convert his penalty kick.
Chelsea have now lost seven penalty shootouts in a row.
The loss punctuates an unexpected decline in form for the Premier League Champions. Chelsea is currently in fifth place in the standings, trailing Tottenham, who are fourth. The FA Cup loss is another blow to the club.
As for Everton, their recent dominance at Stamford Bridges continues. The Toffees have won five of their last six games on Chelsea's home field.
Everton's next match is at home against Sunderland in Premier League competition.