Nigel Carolan's Ireland could not become the first men's side from this country to beat New Zealand at the Stadio Luigi Zaffanella in Viadana this evening.
Ireland began brightly and controlled territory early on but unfortunately fly-half Joey Carbery could only convert one of three penalty opportunities to put the underdogs in front.
The New Zealand response was swift as Tevita Li finished off a move by diving over in the corner after 17 minutes.
Otere Black was unable to convert but he did add two penalties before the break to give the Kiwis a 11-3 half-time lead.
The 10 minutes after the break proved crucial as the Baby Blakcs put the game beyond Ireland with a second try from Li and another from openside Blake Gibson, both of which were converted by Black to make it 25-3.
The final 30 minutes were scoreless as Ireland battled on grimly but they failed to book a place in the semi-finals as the best runner-up from the three groups and bow out.
New Zealand will play France in the final four with the other semi-final featuring England and South Africa.
Ireland play Wales in the shield on Monday in the 5-8th place playoffs.