A 4-3 win on penalties over Olympique Lyon after a deserved 1-0 home victory in their last-16 second leg followed the shock achievement of finishing top of their qualifying group in Europe's elite club competition.
Tiny Cyprus, a minnow in European football terms, burst into celebrations as thousands of APOEL supporters poured into the streets of Nicosia after the nail-biting ending.
"This is a fantastic result. The team deserved this. We got to where we wanted, with the eight best teams in Europe. Now we feel we can move forward, and deal with any team that comes," APOEL chairman Phivos Erotocritou told reporters.
Lyon's Alexandre Lacazette and Michel Bastos had their spot-kicks confidently saved by Dionisios Chiotis, who was also unlucky that Lisandro Lopez's penalty went in off his back.
APOEL scored all four of their spot-kicks with aplomb to send their team mates and fervent fans into delirium in the tight GSP Stadium, with Chiotis mobbed on the pitch.
Gustavo Manduca, sent off in extra-time for a second booking, had earlier netted at the far post on nine minutes after Constantinos Charalambides had slid in a cross as APOEL levelled the aggregate scores after losing the first leg 1-0.
"We knew we would have to try very hard, that it was not going to be an easy game, but the players put in an excellent performance," said APOEL coach Ivan Jovanovic.
"I think the players were very focused and at the end we were vindicated by our qualification. Just saying it, believe me, it's something fantastic."
Lyon, who came into the game on the back of poor domestic form, fielded a defensive lineup with first-leg scorer Lacazette and top scorer Bafetimbi Gomis starting on the bench.
Manduca's goal forced under pressure Lyon coach Remi Garde to urge his side forward and Ederson's overhit free-kick almost sneaked in before his diving header bounced wide but that was as close as the French side came.
"It's an immense disappointment," Lyon president Jean-Michel Aulas said after his side bowed out at the last-16 stage for the fifth time in six seasons.
"That first goal put us in a difficult situation. Playing for qualification here is like playing with fire. I tip my hat to APOEL."
Lyon won seven French titles in a row in the last decade but now lie seventh in Ligue 1 and are all but out of contention for a Champions League place next term.
Rookie coach Garde's future is now up in the air despite reaching a French League Cup final next month.
DOGGED DEFENCE
APOEL, who finished ahead of seasoned campaigners Zenit St Petersburg, Porto and Shakhtar Donetsk in their Champions League group but lie third domestically, had set up with a more attacking side than usual.
They gradually began to sit back after the early advantage with the dogged defence that has shone this term again on show.
The home side still had other chances with Charalambides blasting wide from a difficult angle, Esteban Sol
