The five-time World Champions are the tournament's first high-profile casuality
A controversial goal, 15 minutes from time has knocked Brazil out of the Copa America.
Peru's Raul Ruidiaz scored the game's only goal, with his arm from inside the six-yard box to condemn the Brazilians to a group-stage exit. It is the second Copa America in a row, where Brazil have failed to reach at least, the semi-finals.
Brazil finished third in Group B, despite recording the biggest win of the tournament so far. Last week, they defeated Haiti 7-1 as Liverpool midfielder Philippe Coutinho scored his first international hat-trick.
Despite the win over Haiti, Dunga's side could only draw with Ecuador, before their loss on Sunday night. The win was Peru's first in competitive action against Brazil since 1975.
Brazil's third-placed finish means that Peru meet Colombia in the quarter-finals, while Ecuador meet the hosts, United States. Both games take place later this week.