A late penalty from striker Roberto Soldado saw Granada progress to their first Copa del Rey semi-final in 51 years.
Soldado – who also opened the scoring in the third minute – was the hero for the Andalusian club against his former club Valencia, who are the defending champions of the tournament.
It was a controversial end to a pulsating encounter which saw both teams create multiple chances, but VAR awarded a penalty to the home side after an alleged handball by Valencia’s Jaume Costa.
Valencia had an equaliser disallowed for handball while Granada hit the post twice in an end-to-end first half, before Rodrigo Moreno netted an equaliser for the visitors five minutes before the break.
The hosts enjoyed the lion’s share of the second half chances with Soldado again threatening and substitute Darwin Machis providing a major threat.
It was Soldado’s late penalty which saw the current holders toppled from the competition.