Everton beat Newcastle in a penalty shoot-out after the two sides shared six goals in a thrilling Worthington Cup tie at St James' Park.
After David Unsworth had missed Everton's first attempt the hosts looked as though they were on their way through.
However, Everton then started finding the net and Newcastle missed their last three attempts to hand victory to the visitors.
During normal time Everton had taken the lead through Kevin Campbell's 11th-minute strike before the hosts hit back with two goals in 60 seconds from Kieron Dyer late in the second half.
Steve Watson levelled matters at 2-2 before an Alessandro Pistone own goal and an Unsworth penalty in extra-time set up the drama of a penalty shoot-out.
Richard Wright saved first from Hugo Viana and then Laurent Robert, and with Michael Chopra blazing over Everton were through to the last 16.
The Merseysiders went ahead with 11 minutes gone when, after Rooney had forced Dabizas to concede a corner, Campbell rose unopposed to head Naysmith's cross home.
Viana could have opened the scoring three minutes before the goal and the young Portuguese went close again soon after the goal.
Newcastle enjoyed the best of the first half and Carl Cort and captain-for-the-night Dyer both shot over the bar when well placed.
Everton's Alan Stubbs was a happy man when LuaLua's driven 37th-minute cross hit him in the chest in front of goal and bounced to safety but the visitors had the final chance of the half.
Dyer double
Rooney collected substitute Steve Watson's flick-on and fired in a dipping shot which Harper did well to turn around the post.
Newcastle continued to hammer away after the break but Everton held out and forced Newcastle manager Bobby Robson into a triple substitution with 23 minutes remaining.
He sent on Solano in place of Acuna, Robert for Bernard and handed 18-year-old Michael Chopra a senior debut as a replacement for LuaLua.
Newcastle got themselves back on terms with 13 minutes remaining when Dyer ran on to Viana's inch-perfect through-ball and toe-poked his shot under Wright.
Late flurry
The visitors were still reeling when seconds later Cort laid the ball off neatly and Dyer smashed his side in front with a superb right-foot strike.
However, the game was by no means over and with just five minutes remaining, Rooney burst into space down the right and pulled the ball back for United old boy Steve Watson to hammer home the equaliser.
Newcastle went back in front in extra-time thanks to an Alessandro Pistone own goal after 100 minutes and the hosts looked on their way through.
However, 12 minutes later David Unsworth stroked home a penalty after Steve Caldwell had been sent off to level the scores and take the match to penalties.
Newcastle looked favourites after Unsworth failed to repeat his success during the game, but in the end it was the Everton fans who went home happy.
Newcastle: Harper, Griffin, Dabizas, Caldwell, Elliott, Dyer, Acuna, Viana, Bernard, LuaLua, Cort. Subs: Given, Solano, Hughes, Chopra, Robert.
Everton: Wright, Naysmith, Stubbs, Weir, Pistone, Carsley, Tie Li, Unsworth, Linderoth, Rooney, Campbell. Subs: Watson, Radzinski, Simonsen, Weifeng Li, McLeod.
Referee: M Riley (W Yorkshire).
