Having seen off B36 Torshavn and FK Sutjeska, they fall agonisingly short to Qarabag in the play-off stage.
Jaime Romero's sixth-minute strike left David Healy's side with an uphill challenge before Abdellah Zoubir struck an insurance goal with two minutes left.
Shayne Lavery scored again for the Blues to level the aggregate score but it was too little, too late on this occasion as the Belfast side bowed out in Baku on away goals.
The Irish Premiership champions won't be in the hat for Friday's Europa League group stage draw, but their season is far from over.
They can now refocus their energy on their title defence. They're scheduled to be back in action on Saturday, 7 September for a Belfast derby against Cliftonville at Solitude.
Thanks for joining us! Let's hope we have one or two Irish Premiership clubs in contention for a group stage spot again this time next year!
Lavery's stoppage-time strike
Qarabag 2-1 Linfield
It will be scant consolation, of course, but fair play to Shayne Lavery - that was his fourth goal in three European games, and an admirable response to having been surprisingly omitted from Michael O'Neill's Northern Ireland squad on Wednesday.
What a season he's already having!
Zoubir scores all-important second for Qarabag
Qarabag 2-1 Linfield
FULL-TIME
Qarabag 2-1 Linfield (4-4 on aggregate)
It's all over. It's disappointment for Linfield in Baku.
The Blues lose 2-1 on the night to go out on away goals after a 4-4 aggregate score.
David Healy's men may have fallen short but they have done themselves and the Irish Premiership proud.
It wasn't to be, but they can certainly hold their heads up high.
GOAL
Qarabag 2-1 Linfield
Shayne Lavery scores!
The keeper beats Stewart's cross down and Lavery lashes it into the top corner. It might not be enough, but they haven't given this up!
It's 4-4 on aggregate. Linfield need one more.
GOAL
Qarabag 2-0 Linfield
Zoubir kills the tie! He beats the offside trap, rounds Ferguson and slots the ball into the empty net.
It's heartache for Linfield with just over two minutes remaining.
Safe hands!
Qarabag 1-0 Linfield
Casement whips a cross in from the right but Vagner collects well.
Linfield pushing for the goal
Qarabag 1-0 Linfield
The visitors are enjoying more possession now and are pushing high up the pitch. Tense few minutes coming up.
SUBSTITUTION
Qarabag 1-0 Linfield
Jordan Stewart replaces Joel Cooper. Healy throwing everything at this now.
Great goalkeeping
Qarabag 1-0 Linfield
Lavery gets on the end of a pass and tries to find the onrushing Waterworth. His pass is slightly overcooked, however, and Vagner comes out to collect.
SUBSTITUTION
Qarabag 1-0 Linfield
Waterworth is on for Fallon while Millar replaces Quinn.
SAVE!
Qarabag 1-0 Linfield
Ferguson makes another top save to deny Gueye! The striker gets on the end of the cross but the Blues keeper gets down well to block the shot.
Callacher follows up to clear the rebound away for a corner, from which Qarabag fail to score.
Changes afoot
Qarabag 1-0 Linfield
Waterworth and Millar are set to be introduced.
Not quite!
Qarabag 1-0 Linfield
Lavery wins a (very soft) free-kick high up the pitch. Quinn whips his cross in but Qarabag clear. Fallon tries his luck with the rebound from distance but doesn't connect with it well at all.
Time running out.
OVER!
Qarabag 1-0 Linfield
Linfield have been camped in their penalty area for the last five minutes. Qarabag want to put this to bed. Gueye has a chance to do just that but misjudges his header and it goes over.
SAVE!
Qarabag 1-0 Linfield
Zoubir dances his way around two Linfield defenders in the box and produces a fine save from Ferguson.
Lovely skill by the Qarabag winger there.
Richard making a difference
Qarabag 1-0 Linfield
Richard Almeida, who was suspended last week, has introduced a sense of authority to the Qarabag defence. He has cleaned up countless Linfield punts up the pitch.
As a result, Lavery is becoming an increasingly isolated figure. Expect Healy to make a change in the next five minutes or so.
YELLOW CARD
Qarabag 1-0 Linfield
Ailton goes into the referee's book for a clumsy challenge on Hery.
Another decent position for Linfield.
HITS THE WOODWORK
Qarabag 1-0 Linfield
Sadygov hits the post with the free-kick! Ferguson may have had it covered.
Free-kick!
Qarabag 1-0 Linfield
Almost a penalty! Gueye gave Stafford the slip and the Linfield defender has to bring the striker down. It's a yard outside the area.
Live Reporting
Matt Gault
All times stated are UK
Latest PostLinfield bow out of Europe
Qarabag 2-1 Linfield
It's the end of the road for Linfield in Europe.
Having seen off B36 Torshavn and FK Sutjeska, they fall agonisingly short to Qarabag in the play-off stage.
Jaime Romero's sixth-minute strike left David Healy's side with an uphill challenge before Abdellah Zoubir struck an insurance goal with two minutes left.
Shayne Lavery scored again for the Blues to level the aggregate score but it was too little, too late on this occasion as the Belfast side bowed out in Baku on away goals.
The Irish Premiership champions won't be in the hat for Friday's Europa League group stage draw, but their season is far from over.
They can now refocus their energy on their title defence. They're scheduled to be back in action on Saturday, 7 September for a Belfast derby against Cliftonville at Solitude.
Thanks for joining us! Let's hope we have one or two Irish Premiership clubs in contention for a group stage spot again this time next year!
Lavery's stoppage-time strike
Qarabag 2-1 Linfield
It will be scant consolation, of course, but fair play to Shayne Lavery - that was his fourth goal in three European games, and an admirable response to having been surprisingly omitted from Michael O'Neill's Northern Ireland squad on Wednesday.
What a season he's already having!
Zoubir scores all-important second for Qarabag
Qarabag 2-1 Linfield
FULL-TIME
Qarabag 2-1 Linfield (4-4 on aggregate)
It's all over. It's disappointment for Linfield in Baku.
The Blues lose 2-1 on the night to go out on away goals after a 4-4 aggregate score.
David Healy's men may have fallen short but they have done themselves and the Irish Premiership proud.
It wasn't to be, but they can certainly hold their heads up high.
GOAL
Qarabag 2-1 Linfield
Shayne Lavery scores!
The keeper beats Stewart's cross down and Lavery lashes it into the top corner. It might not be enough, but they haven't given this up!
It's 4-4 on aggregate. Linfield need one more.
GOAL
Qarabag 2-0 Linfield
Zoubir kills the tie! He beats the offside trap, rounds Ferguson and slots the ball into the empty net.
It's heartache for Linfield with just over two minutes remaining.
Safe hands!
Qarabag 1-0 Linfield
Casement whips a cross in from the right but Vagner collects well.
Linfield pushing for the goal
Qarabag 1-0 Linfield
The visitors are enjoying more possession now and are pushing high up the pitch. Tense few minutes coming up.
SUBSTITUTION
Qarabag 1-0 Linfield
Jordan Stewart replaces Joel Cooper. Healy throwing everything at this now.
Great goalkeeping
Qarabag 1-0 Linfield
Lavery gets on the end of a pass and tries to find the onrushing Waterworth. His pass is slightly overcooked, however, and Vagner comes out to collect.
SUBSTITUTION
Qarabag 1-0 Linfield
Waterworth is on for Fallon while Millar replaces Quinn.
SAVE!
Qarabag 1-0 Linfield
Ferguson makes another top save to deny Gueye! The striker gets on the end of the cross but the Blues keeper gets down well to block the shot.
Callacher follows up to clear the rebound away for a corner, from which Qarabag fail to score.
Changes afoot
Qarabag 1-0 Linfield
Waterworth and Millar are set to be introduced.
Not quite!
Qarabag 1-0 Linfield
Lavery wins a (very soft) free-kick high up the pitch. Quinn whips his cross in but Qarabag clear. Fallon tries his luck with the rebound from distance but doesn't connect with it well at all.
Time running out.
OVER!
Qarabag 1-0 Linfield
Linfield have been camped in their penalty area for the last five minutes. Qarabag want to put this to bed. Gueye has a chance to do just that but misjudges his header and it goes over.
SAVE!
Qarabag 1-0 Linfield
Zoubir dances his way around two Linfield defenders in the box and produces a fine save from Ferguson.
Lovely skill by the Qarabag winger there.
Richard making a difference
Qarabag 1-0 Linfield
Richard Almeida, who was suspended last week, has introduced a sense of authority to the Qarabag defence. He has cleaned up countless Linfield punts up the pitch.
As a result, Lavery is becoming an increasingly isolated figure. Expect Healy to make a change in the next five minutes or so.
YELLOW CARD
Qarabag 1-0 Linfield
Ailton goes into the referee's book for a clumsy challenge on Hery.
Another decent position for Linfield.
HITS THE WOODWORK
Qarabag 1-0 Linfield
Sadygov hits the post with the free-kick! Ferguson may have had it covered.
Free-kick!
Qarabag 1-0 Linfield
Almost a penalty! Gueye gave Stafford the slip and the Linfield defender has to bring the striker down. It's a yard outside the area.
Yellow card for Stafford.