The Wallabies have gone down to Wales 29-25 in a Rugby World Cup classic in Tokyo, despite a stunning comeback in the second half.
Having trailed 26-8 early in the second half, the Wallabies refused to lie down and they closed the gap on the scoreboard to 26-25 late in the term.
But Wales found enough breathing space with a penalty goal from the boot of Rhys Patchell in the 71st minute and kept its unbeaten record alive in Pool D.
The result almost assures Wales will finish the pool stage on top, while the Wallabies are in the box seat to finish second, with matches against Uruguay and Georgia still to come.
Should the Wallabies finish second it is likely they will face England in the quarter-finals.
Some contentious refereeing decisions will no doubt be debated in the coming days, but the Welsh deserved the victory and look set to play France in the first round of the knock-out stages.
Michael Cheika's side made it hard from themselves against Wales, trailing 10-0 after just 13 minutes.
They were on the back foot immediately when Wales five-eighth Dan Biggar landed a drop goal in the opening minute of play, before centre Hadleigh Parkes crossed the stripe in the right-hand corner for the first try.
The Wallabies refused to panic, however, and a brilliant cross-field kick from Bernard Foley set up veteran Adam Ashley-Cooper for a try in the 20th minute.
Foley slotted a penalty goal eight minutes later to set up a 10-8 scoreline in the favour of Wales.
With Patchell replacing Biggar because of an HIA, Wales did not miss a beat from the tee and the replacement 10 kicked two penalty goals and converted a Gareth Davies's intercept try to establish a 23-8 lead at half-time.
A drop goal from Patchell extended the advantage to 18 points just after the break, before the Wallabies launched their fight-back with converted tries to Dane Haylett-Petty and captain Michael Hooper.
Matt Toomua, who was brilliant at five-eighth when he replaced Bernard Foley, added a 67th-minute penalty goal to cut Wales's lead to one point, but Patchell ensured the Six Nations winners stayed in front when he managed his third three-pointer of the evening.
Look back over the action via our blog.
