Emma Raducanu's hopes of being the first British woman to win the Eastbourne title since 1975 were dashed after defeat to Maya Joint.
Raducanu had taken a one-set lead but was unable to build on her advantage as she was beaten 6-4 1-6 6-7 (4-7) in two hours and 33 minutes on Wednesday.
In what proved to be her final match before Wimbledon, Raducanu found herself behind early on against the serve after missing a break opportunity in the first game of the match.
But she roared back to take the opening set with two timely breaks, though Joint levelled the contest with a dominant display in the second to take the match the distance.
Raducanu was staring defeat in the face after going 5-2 down, but she regained her composure and reeled off three straight games to force a third-set tie-break.
But the Briton was unable to maintain her momentum, though, with Joint sealing the victory with a fierce ace, setting up a clash with Anna Blinkova in the quarter-finals.
Data Debrief: Raducanu endures Joint pain
The last British winner at Eastbourne was the great Virginia Wade 50 years ago, with Raducanu unable to replicate the feat ahead of the penultimate major of the season.
And this match was decided by the finest of margins, with Joint converting seven of the 10 break points she created herself to Raducanu's six from 14 attempts.
The 19-year-old Australian looks destined to be a force to be reckoned with, having already beaten two-time grand slam finalist Ons Jabeur in the first round, which was also her maiden Tour-level grass-court victory.
