Chelsea were forced into a penalty shoot-out after a remarkable 3-3 draw after extra time at Ewood Park tonight but lost.
Gael Kakuta and Michael Ballack missed their kicks as the Londoners crashed out in the quarter-final stage.
The Blues would have faced Aston Villa in the semi-final had they won but head home defeated.
They lost 4-3 on penalties.
Blackburn took the first penalty with Beni Mccarthy and scored -1 -0
Michael Ballack stepped up and missed - Paul Robinson saved - 1-0
Blackburn's Brett Emeton scored - 2-0
Didier Drogba came on next and scored easily - 2-1
Vince Grella walked up and scored - 3-1
Florent Malouda needed to score and scored high and left past Robinson - 3-2
Nico Kalinic missed so it was still 3-2
Zirkov scored to tie it up 3-3
Hoilett put Blackburn 4-3
Lastly in this round it was Gael Kauta to take the penalty and Robinson saved it to knock out Chelsea.