Nepal's roller coaster ride at the Under-19 World Cup reached its conclusion on Thursday with a six wicket defeat to reigning champions Australia.

Nepal missed out on a place in the Super League by the narrowest of margins after causing the shock of the tournament by beating South Africa. They won three of their six matches in Chittagong in front of considerable support from local-based Nepalese students.

But defeat to Scotland in their previous match meant that they needed to win against Australia to progress.

Nepal won the toss and elected to bat and fared much better against the Australia pace attack that the other teams in their group. They managed to bat out the 50 overs with survival rather than scoring their objective.

Paras Khadka top-scored with 33 as Nepal crawled to 154 for 9.

Australia set about their reply in their usual positive manner but had to change tack after a burst from right-arm seamer Manjeet Shrestha put both openers back in the pavilion for 30.

By the 14th over, Australia were 62 for 4 and Nepal's army of fans were sensing a final twist in their enthralling tale. But it was not to be as Adam Crosthwaite and Ahillen Beadle checked Nepal's progress and saw Australia home with the loss of no further wickets.

Nepal captain Shakti Gauchan scored over 170 runs in the tournament and said he would take home fond memories of his time in Bangladesh.

"It has been an enjoyable tournament. I've learnt a lot on the pitch and everyone has been really nice to us," said Gauchan.

Nepal coach Roy Dias blamed his side's elimination of the defeat to Scotland.

"It was disappointing not to get through but the Scotland game really cost us," said Dias.

"We've done well in this tournament and the boys should be proud of the way that they have played."

Australia can no longer retain its title as it failed to make the Super League competition. It has qualified in first place from the Plate Championship Group 1 and will face the loser of tomorrow's match between Ireland and Bangladesh in the first semi-final on Sunday 29 February.