Sweden fought hard to stay in the competition but it was crowd favourites Brazil who held off Sweden's attack in the second half.
Both teams attempts to register more goals failed after they ended the first half deadlocked at 1-all.
A penalty to Sweden saw a corner kick find class forward Stina Blackstenius (9) who headed the first goal into Brazil's goal net in the 13th minute putting Sweden in front 1-0.
Brazil came back equalising the score 1-all in the 30th minute with a goal from Gabi Nunies.
Sweden came under heavy attack in the start of the second half with Brazil missing two goals opportunities in the 52nd minute.
It was anybody's game in the second half of the match between the two sides which saw a lot of aggressive tactics on the field.
Brazil's forward Geyse missed numerous attempts to find the net as she was heavily guarded by Sweden's defender's.
A back kick by Sweden's forward, Anna Anvegard towards the Brazilians goal mouth was pushed up by keeper Carla in the 62nd minute finding the back of the net.
Brazil's midfielder Katrine was carried off the field in a stretcher in the 75th minute after she injured herself in front of Sweden's goal mouth.
With the final five minutes to go, Sweden tried desperately to stay in the competition by scoring a goal but the Brazilians defense held them off.
The match was played in front of 3,533, while player of the match went to Brazil's Daiane Silve.
In other matches tonight, Nigeria and Canada are both out of the competition and will not proceed to the quarter finals.
Nigeria beat Spain 2-1 tonight at the National Football Stadium but the win was a little too late for the 2014 FIFA U-20 Women's World Cup who lost due to a low for and against to Spain.