England's wait to win a first Women's World Cup title goes on after Spain deservedly triumphed in the final in Sydney.
The Lionesses, looking to become the first England senior side since the men's team in 1966 to win the World Cup, suffered heartbreak after being outplayed by a Spanish side full of flair and creativity.
England's players fell to their knees in tears at the final whistle as Spain celebrated inside their penalty area after dealing with a final corner kick in the 14th minute of nerve-wracking stoppage time.
Spain captain Olga Carmona slotted the winner past goalkeeper Mary Earps in the first half, capitalising after England's Lucy Bronze lost possession in midfield.
England manager Sarina Wiegman, who has now lost two successive World Cup finals, introduced Lauren James and Chloe Kelly at half-time but Spain maintained control despite the Lionesses' best efforts.
Earps, who won the Golden Glove award as best goalkeeper at the tournament, made several stunning saves, none better than from the penalty spot to deny Jenni Hermoso in the second half.
The Manchester United stopper moved early to her left and caught Hermoso's effort, the penalty having being awarded for handball against midfielder Keira Walsh following a lengthy video assistant referee review.
But it was one step too far for the European champions, who lost just their second match in two years under Wiegman.
"I'm just deflated," said England defender Lucy Bronze. "Obviously we went into the World Cup wanting to win it and we were so close, but in the end we couldn't quite get it over the line.
"I am proud of what we have achieved but I think everybody that knows me, knows that I only like gold medals."
Spain are crowned champions for the first time despite going into the tournament under a cloud of controversy following a dispute between players and the Spanish football federation.
Missed opportunity as Spain capitalise
Both teams came into the final full of confidence, having improved on their performances throughout the tournament.
England, who played in front of a sold-out Wembley crowd last summer to win the Euros final, started brightly, testing Spain's defence with balls over the top and in behind.
Manchester City forward Lauren Hemp was direct and aggressive, and had England's best chance but her curling effort from 15 yards hit the crossbar.
However Spain, packed with Barcelona stars who won their second Women's Champions League title this season, imposed their quality and worked out how to deal with England's high press.
They dominated large chunks of the game, exposing the spaces left by England's attacking full-backs and took their chance when Bronze cut inside from the right and gave the ball away when she was stopped by a wall of red in the centre circle.
Spain intelligently switched play to their left and Carmona ran on to a simple pass from Mariona Caldentey before stroking the ball low past a diving Earps.
Spain had several chances to extend their lead - Earps blocked shots from Ona Batlle, Caldentey and Alba Redondo in each half - while Salma Paralluelo's first-time strike brushed the post on the stroke of half-time.
It was a deserved victory for Spain but it will feel like a missed opportunity for the Lionesses, who have found a way to win so often under Wiegman but could not find the answers in the biggest game in their history.
Spain overcome dispute as Bronze misses out
Prior to this year's competition, Spain had only ever won one Women's World Cup match.
They had suffered defeat at the hands of England in the Euro 2022 quarter-finals but unlike that evening in Brighton when the Lionesses came from behind to win 2-1, Spain stuck to their task and saw out victory.
The streets of Sydney, which had been draped in green and gold for most of the competition, were transformed on Sunday to represent Spain and England's colours.
England fans came dressed in costumes, banging drums and chanting on the city's trains en route to the stadium and though they dominated numbers in the crowd, it was Spain's supporters celebrating at full-time.
Bronze, 31, was in tears lying on the pitch at full-time and had to watch on as many of her Barcelona team-mates danced for the cameras while they prepared the stage for the trophy celebration.
She has won almost everything in the game but still cannot get her hands on the most desired trophy of them all.
"The goal is always to win tournaments with this team. We have shown that we can do that," added Bronze.
"We have made a final. There is no reason why the team can't go and create more legacies and more winning legacies."
Meanwhile, Spain's achievement is a remarkable one given manager Jorge Vilda survived a player revolt less than 12 months ago. That unrest in the set-up meant they were missing Sandra Panos, Mapi Leon, Patri Guijarro and Claudia Pina, who all helped Barcelona win the Champions League in June.
Their victory could transform women's football in Spain, which has been thrust into the limelight in recent years following Barcelona's domestic success.
Player of the match
EarpsMary Earps
Spain
Squad number6Player nameBonmatí
Squad number19Player nameCarmona
Squad number18Player nameParalluelo
Squad number8Player nameMariona Caldentey
Squad number2Player nameBatlle
Squad number17Player nameRedondo
Squad number10Player nameHermoso
Squad number23Player nameCata Coll
Squad number4Player nameParedes
Squad number14Player nameCodina
Squad number3Player nameAbelleira
Squad number12Player nameHernández
Squad number5Player nameAndrés
Squad number11Player namePutellas
England
Squad number1Player nameEarps
Squad number16Player nameCarter
Squad number5Player nameGreenwood
Squad number11Player nameHemp
Squad number18Player nameKelly
Squad number6Player nameBright
Squad number9Player nameDaly
Squad number23Player nameRusso
Squad number7Player nameJames
Squad number19Player nameEngland
Squad number8Player nameStanway
Squad number10Player nameToone
Squad number4Player nameWalsh
Squad number2Player nameBronze
Line-ups
Spain
Formation 4-3-3
23Coll Lluch
2Batlle4Paredes14Codina19Carmona
6Bonmatí3Abelleira10Hermoso
17Redondo18Paralluelo8Caldentey Oliver
23Coll Lluch2Batlle4Paredes14CodinaSubstituted forAndrésat 73'minutes19Carmona6Bonmatí3Abelleira10Hermoso17RedondoSubstituted forHernándezat 60'minutes18ParallueloBooked at 78mins8Caldentey OliverSubstituted forPutellasat 90'minutesSubstitutes
1Rodríguez Rivero5Andrés7Guerrero9González11Putellas12Hernández13Salón15Navarro16Pérez20Gálvez21Zornoza22del CastilloEngland
Formation 3-4-1-2
1Earps
16Carter6Bright5Greenwood
2Bronze8Stanway4Walsh9Daly
10Toone
23Russo11Hemp
1Earps16Carter6Bright5Greenwood2Bronze8Stanway4Walsh9DalySubstituted forKellyat 45'minutes10TooneSubstituted forEnglandat 87'minutes23RussoSubstituted forJamesat 45'minutes11HempBooked at 55minsSubstitutes
3Charles7James12Nobbs13Hampton14Wubben-Moy15Morgan17Coombs18Kelly19England20Zelem21Roebuck22RobinsonReferee:Tori PensoAttendance:75,784Live Text
Match ends, Spain 1, England 0.
Second Half ends, Spain 1, England 0.
Corner, England. Conceded by Ona Batlle.
Attempt blocked. Millie Bright (England) header from the centre of the box is blocked.
Alexia Putellas (Spain) wins a free kick in the defensive half.
Foul by Georgia Stanway (England).
Foul by Salma Paralluelo (Spain).
Jess Carter (England) wins a free kick in the defensive half.
Jenni Hermoso (Spain) wins a free kick in the defensive half.
Foul by Chloe Kelly (England).
Corner, Spain. Conceded by Jess Carter.
Corner, Spain. Conceded by Lucy Bronze.
Attempt blocked. Salma Paralluelo (Spain) left footed shot from the left side of the box is blocked. Assisted by Teresa Abelleira.
Attempt blocked. Aitana Bonmatí (Spain) left footed shot from outside the box is blocked. Assisted by Teresa Abelleira.
Alexia Putellas (Spain) wins a free kick on the left wing.
Foul by Georgia Stanway (England).
Hand ball by Lucy Bronze (England).
Foul by Irene Paredes (Spain).
Lucy Bronze (England) wins a free kick in the defensive half.
Corner, Spain. Conceded by Mary Earps.