Extra time was required to separate the two sides after 90 minutes in which neither side managed to have an attempt on target.
The difference was made in the 117th minute, though, as Ricardo Quaresma’s late goal fired Portugal into the quarter-finals, where they will face Poland.
And Rakitic was infuriated by the result, as he insists his side dominated the game and believes it’s unfair that Croatia are out of the tournament.
“They don't have a clue how they scored!” said the Barcelona midfielder.
“If you ask them now how they scored, they probably wouldn't know! They say football is the best game in the world, but sometimes it is the dumbest thing in the world! That was tonight, because it is impossible that the better team has to go home.
“I don't know why things go against us, where is justice, why is it always avoiding us? We played great the whole tournament, I can't believe we have to go home.”
Modric was in tears at the final whistle and the Real Madrid midfielder also insists that Croatia did not deserve to be eliminated.
“We all agreed better team has to go home,” said Modric.
“We played well the whole tournament and don’t deserve to be out. We dominated, had the ball, created chances and they scored and won from some lucky counter attack.”