Palestine's historic Asian Cup run over in last 16 loss to Qatar
The game north of Doha took place against the backdrop of the Israel-Hamas war in the Palestinian territory of Gaza and a brief moment's silence was held before kick-off.
Some of the Palestinian players have lost loved ones or have family trapped in Gaza, and the team have been forced to train and play matches overseas in the lead-up to the tournament.
Palestine's Oday Dabbagh stunned the crowd of almost 65,000 at the tent-like Al-Bayt Stadium by opening the scoring in the 37th minute.
He and his teammates celebrated by crossing their raised arms in a handcuffs gesture to symbolise the plight of the Palestinian people.
Qatar equalised through captain Hassan Al-Haydos in first-half injury time, before Akram Afif scored his fourth goal of the tournament, from the penalty spot, four minutes after the break.
The hosts made it four wins out of four at the competition and moved into a quarter-final against either Uzbekistan or Thailand.
It was also their 11th straight win at the Asian Cup, which they lifted for the first time in 2019.
Qatar coach Tintin Marquez named his strongest starting lineup after using all 26 members of his squad during the group stage.
Afif returned along with striker Almoez Ali after being rested in Qatar's final group game.
The hosts dominated the early possession but it was Palestine who had the first chance, Amid Mahajna hitting a shot from distance that goalkeeper Meshaal Barsham turned round the post.
Dabbagh blazed over the bar as Palestine continued to threaten, before Barsham again came to the rescue from a Mahmoud Abu Warda effort.
Qatar conceded for the first time in the tournament after a sloppy pass from defender Bassam Al-Rawi.
Dabbagh latched onto the loose ball and held off two Qatar defenders before firing a shot into the far corner.
It was no less than Palestine deserved, but Qatar equalised with virtually the last kick of the half.
Afif picked out Haydos with a cut-back corner and the captain rammed the ball past goalkeeper Rami Hamadeh.
Qatar needed just four minutes after the restart to take the lead, after a Mohammed Saleh foul on Ali gave them a penalty.
Afif made no mistake from the spot and Qatar cruised through the rest of the match with Palestine tiring badly.