After one of the craziest mornings in Sevens history, New Zealand have made the last eight by a single point while Australia secure progression after Great Britain won.
It was all to play for in the final round of pool matches as Australia upset South Africa to ensure their seeding as the best third placed side.
It went down to the final game of the morning with USA needed to beat Fiji, or lose by less than four points to go through, but eventually lost by five to give the last spot to New Zealand.
USA missed a conversion with seconds left to play that would have sent them through - and New Zealand home - but it wasn't to be.
Yes, THAT conversion COULD have buried #NZL !!— 7s in South Africa (@BlitzBokke) August 10, 2016
Meanwhile Australia will now face South Africa again for the second time on day two, with the Blitzbokke topping Pool B and Australia the top-ranked third.
"We didn’t see the results panning out the way they have, obviously Japan beating New Zealand yesterday put a spanner in the works and us dropping that game against France didn’t help at all," Australia captain Ed Jenkins said after their final pool clash.
It was renewed Australia side who looked completely different from their displays on day one, controlling the tempo against South Africa.
"It was a big change in our game today. Defensively we fronted up in that game," Jenkins said.
"We know it's no second chances from here on out so we’ll be giving it all we got."
History was against Andy Friend's side with South Africa having won 50 of the 80 clashes between the two nations.
The much-improved Japan made light work of Kenya to progress through and face France, who were clinical against Spain.
In the other quarter-finals, Great Britain will play Argentina with both sides impressing on day two, with Team GB holding on against New Zealand while Argentina trounced hosts Brazil.
The first quarter-final though will feature the world's top two sides as Fiji take on New Zealand in a blockbuster.
Olympic quarter-final draw
Fiji v New Zealand (6am AEST)
Japan v France (6.30am AEST)
Great Britain v Argentina (7am AEST)
South Africa v Australia (7.30am AEST)