France had a goal ruled out by VAR for offside in the final minute of stoppage-time as Tunisia held on to register a shock victory.
However, despite victory they failed to qualify for the last 16 of the World Cup.
Substitute Antoine Griezmann volleyed in a dramatic equaliser at the Education City Stadium, but the VAR decision meant Tunisia captain Wahbi Khazi's brilliant first-half goal proved to be the winner.
However, with Australia recording a 1-0 victory over Denmark in the other match in Group D, Tunisia's hopes of progressing had been dashed before Griezmann's goal was ruled out.
France are through to the last 16 as group winners having already secured qualification with victory over Denmark in the last game.
Despite their failure to progress, Tunisia captain Khazi produced the moment fans had been waiting for - a goal at this World Cup - when he drove to the edge of the box and coolly rolled it into the bottom right corner.
There was an outpouring of emotion from a large following of Tunisia fans at the stadium, while Tunisian substitutes sprinted onto the pitch in a moment of pure elation.
But their celebrations were shortlived when news of Australia's lead began to ripple through the stadium, with supporters checking their phones for updates from the other match in Group D.
France, who were much-changed from their win over Denmark having already qualified as group winners, lacked quality in a disappointing performance.
Paris St-Germain forward Kylian Mbappe and Atletico Madrid's Griezmann were brought on later in the second half to try and find a way back into the game.
They had an impact despite loud jeers and whistling from Tunisia fans keen to put them off and Griezmann almost provided the goal they craved.
Didier Deschamps' side are set to face the runner-up of Group C, currently Argentina, in the last 16 on Sunday, 4 December.
Tunisia's wait to reach the knockout stages of the World Cup for the first time continues as they exit the competition.
Tunisia have never progressed to the knockout stages of the World CupDramatic evening as Tunisia hopes dashed
Tunisia knew they needed to win the game to stand any chance of progressing and they started with plenty of intent.
Goalscorer Khazri was a threat, while France defender Eduardo Camavinga was often overloaded out wide and needed support from Liverpool centre-back Ibrahima Konate.
The support for Tunisia far outweighed France and that majority were given a brief outpouring of celebration when Nader Ghandri's volley flew past goalkeeper Steve Mandanda, only to be ruled out for offside.
As the first half wore on, Tunisia fans' impatience started to show - though their support remained relentless - as chance after chance came, but goalkeeper Mandanda did not look like conceding.
Then a magical moment from Khazri opened up space for himself on the edge of the box and his low, precise strike beat Mandanga in the bottom corner.
Tunisia fans were full of hope - they were heading into the last 16 as things stood - but two minutes later, Australia's goal meant it was taken out of their hands.
Deschamps did not waste too much time in the second half to bring on Mbappe and Griezmann and from then on, France were on the front foot.
Tunisia clung on following a series of corners late on, but Griezmann eventually found the back of the net via a deflection.
However, France's celebrations quickly turned to frustration when the referee went to the pitchside monitor to view VAR and the goal was ruled out.
Player of the match
Ben SlimaneAnis Ben Slimane
Tunisia
Squad number25Player nameBen Slimane
Squad number10Player nameKhazri
Squad number14Player nameLaïdouni
Squad number21Player nameKechrida
Squad number15Player nameBen Romdhane
Squad number18Player nameChaalali
Squad number24Player nameAbdi
Squad number12Player nameMaâloul
Squad number3Player nameTalbi
Squad number17Player nameSkhiri
Squad number5Player nameGhandri
Squad number4Player nameMeriah
Squad number9Player nameJebali
Squad number16Player nameDahmen
France
Squad number17Player nameSaliba
Squad number7Player nameGriezmann
Squad number10Player nameMbappé
Squad number24Player nameKonaté
Squad number11Player nameDembélé
Squad number14Player nameRabiot
Squad number8Player nameTchouaméni
Squad number25Player nameCamavinga
Squad number4Player nameVarane
Squad number20Player nameComan
Squad number3Player nameDisasi
Squad number13Player nameFofana
Squad number12Player nameKolo Muani
Squad number16Player nameMandanda
Squad number15Player nameVeretout
Squad number6Player nameGuendouzi
Line-ups
Tunisia
Formation 3-4-2-1
16Dahmen
4Meriah5Ghandri3Talbi
21Kechrida17Skhiri14Laïdouni12Maâloul
25Ben Slimane15Ben Romdhane
10Khazri
16Dahmen4Meriah5Ghandri3Talbi21KechridaBooked at 28mins17Skhiri14Laïdouni12Maâloul25Ben SlimaneSubstituted forAbdiat 83'minutes15Ben RomdhaneSubstituted forChaalaliat 74'minutes10KhazriSubstituted forJebaliat 59'minutesSubstitutes
1Mathlouthi2Ifa6Bronn7Msakni8Mejbri9Jebali11Khenissi13Sassi18Chaalali19Jaziri20Dräger22Ben Saïd23Sliti24Abdi26HassenFrance
Formation 4-3-3
16Mandanda
3Disasi4Varane24Konaté25Camavinga
13Fofana8Tchouaméni15Veretout
20Coman12Kolo Muani6Guendouzi
16Mandanda3Disasi4VaraneSubstituted forSalibaat 63'minutes24Konaté25Camavinga13FofanaSubstituted forGriezmannat 73'minutes8Tchouaméni15VeretoutSubstituted forRabiotat 63'minutes20ComanSubstituted forMbappéat 63'minutes12Kolo Muani6GuendouziSubstituted forDembéléat 79'minutesSubstitutes
1Lloris2Pavard5Koundé7Griezmann9Giroud10Mbappé11Dembélé14Rabiot17Saliba18Upamecano22Hernández23Aréola26ThuramReferee:Matthew CongerAttendance:43,627Live Text
Match ends, Tunisia 1, France 0.
Second Half ends, Tunisia 1, France 0.
VAR Decision: No Goal Tunisia 1-0 France.
GOAL OVERTURNED BY VAR: Antoine Griezmann (France) scores but the goal is ruled out after a VAR review.
Offside, France. Aurélien Tchouaméni tries a through ball, but Antoine Griezmann is caught offside.
Corner, France. Conceded by Yassine Meriah.
Eduardo Camavinga (France) wins a free kick in the attacking half.
Foul by Issam Jebali (Tunisia).
Corner, France. Conceded by Wajdi Kechrida.
Attempt saved. Kylian Mbappé (France) right footed shot from long range on the left is saved in the bottom right corner.
Attempt blocked. Kylian Mbappé (France) right footed shot from outside the box is blocked.
Kylian Mbappé (France) wins a free kick in the attacking half.
Foul by Ghaylen Chaalali (Tunisia).
Corner, France. Conceded by Nader Ghandri.
Attempt blocked. Randal Kolo Muani (France) right footed shot from outside the box is blocked. Assisted by Antoine Griezmann.
Attempt saved. Kylian Mbappé (France) right footed shot from a difficult angle on the left is saved in the top right corner. Assisted by Eduardo Camavinga.
Ibrahima Konaté (France) wins a free kick in the defensive half.
Foul by Issam Jebali (Tunisia).
Attempt missed. Adrien Rabiot (France) left footed shot from the left side of the box misses to the right. Assisted by Ousmane Dembélé with a cross.
Substitution, Tunisia. Ali Abdi replaces Anis Ben Slimane.
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