Real Madrid will take on reigning European champions Paris Saint-Germain in a heavyweight clash for a place in the final of the Club World Cup.
The fifteen-time European champions survived a late Dortmund scare to seal a place in the last four of the competition.
Gonzalo Garcia continued his impressive run of form in the tournament as he put Real Madrid ahead 10 minutes into the match.
The 21-year-old striker received Arda Guler’s cross in the box and buried the ball into right corner to register his fourth goal of the competition.
Fran Garcia doubled the lead 10 minutes later as he smashed home a cut-back pass from former Liverpool defender Trent Alexander-Arnold.
Jude Bellingham missed the chance to put Xabi Alonso’s men 3-0 up as he missed the target after a brilliant sequence of passes and movements.
The second half saw no real action until the added time of the 90.
Gregor Kobel pilled off a brilliant save to deny Federico Valverde’s rebound in the first minute of added time.
Two minutes later, Borussia Dortmund got a lifeline back into the tie as Maximilian Beier powered a shot into the left side of goal.
Kylian Mbappe scored his first goal of the tournament with an acrobatic strike to restore Real Madrid’s two-goal advantage.
The last moments of the tie was dramatic as Dean Huijsen gave away a penalty and received a red card in the process.
Serhou Guirassy steeped ip and converted to reduce the deficit to one goal with a few minutes left on the clock.
Thibault Courtois pulled off a sublime save to stop Marcel Sabitzer’s shot from landing inside the net in the last seconds of the enthralling showepiece in East Rutherford.