Despite the loss, thousands of fans took to the streets of Praia, beating drums, sounding car horns and celebrating a campaign that captured the imagination of football fans around the world.
The tiny Atlantic nation, with a population of just over 500,000, made history by reaching the knockout stage in their first-ever FIFA World Cup, having held Spain, Uruguay and Saudi Arabia in the group phase.
Cape Verde came within touching distance of one of the greatest upsets in World Cup history when Deroy Duarte's second-half equaliser forced defending champions Argentina into extra time. However, an unfortunate own goal from Diney Borges in the 111th minute handed Argentina a 3-2 victory and a place in the next round against Egypt.
"We lost the match, but it feels like a victory because we stood toe-to-toe with the world champions," supporter Adilson Soaresz said. "Cape Verde was magnificent."
Celebrations in the capital continued into the early hours, with fans praising the team's fearless performance.
"Cape Verde leaves this World Cup with its head held high," said Pedro Ramos. "We were so close to beating Argentina. We were allowed to dream."
Coach Bubista had insisted before the match that his side had earned their place on merit and had nothing to fear, and his players backed up those words with a courageous display that earned admiration despite the narrow defeat.
Cape Verde's unforgettable World Cup adventure may be over, but their historic run has firmly established the Blue Sharks as one of the tournament's greatest success stories.
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