The coach has criticised his team's performance at Hampden Park, and conceded that winning their next two encounters at the Games is absolutely vital if they want to take gold
La Roja face an uphill battle to make the knockout stages after falling to Yuki Otsu's winner at Hampden Park, as a 2-2 draw between the other sides in the group confined Milla's men to the foot of the table.
And the former Real Madrid man was not happy with Spain's performance, and particularly with the haphazard manner in which they attacked once Inigo Martinez had been sent off.
"They were not comfortable with the ball at all," he said in an interview after the game. "We went on the attack without thinking about the defence."
And the 46-year-old knows that the next two games are pivotal for the Spanish if they want to get their tournament back on track.
"We have two finals against Honduras and Morocco. We need to go into the games with this mentality."
Spain face Los Catrochos on Sunday.