The 7-6 (3) 7-6(4) 4-6 7-6(4) score does not remotely begin to tell the story. This was extraordinary and superbly as Thiem played, Nadal will be kicking himself.
Nadal had already squandered the first set from a break up when he was warned for a time violation for exceeding the shot clock on his serve midway through the second set
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He was a break ahead again and frustrated on a hot, humid night (it was 28 degrees at 9pm) the world No.1 headed to the umpire for a showdown.
Two very long, physical points had just been played and perhaps a little leniency might be given Nadal felt.
He was batted away at which point the conditions and the pounding aggressive play by the 26-year-old Thiem gnawed away.
Thiem, world ranked five, duly broke back for 4-4 and after a second poor tie-break in succession, Nadal was down by two sets.
If there is one man to back from two sets down it is Majorca's finest surely but, staggeringly, he has not come back from such a deficit since Wimbledon 2007 and could not here.
It is rare to see the Spaniard so uncertain but, on serve, he appeared overly conscious of the shot clock, aware that overrunning it again would lead to the loss of a first serve. For a player as twitchy and routine bound as him, it was a damning penalty, making him tentative and nervy.
But praise to the Austrian, facing a foe to whom he trailed 9-4 in matches played calls for enormous resolve and self-belief and he delivered.
It is rare to see the Spaniard so uncertain but, on serve, he appeared overly conscious of the shot clock, aware that overrunning it again would lead to the loss of a first serve. For a player as twitchy and routine bound as him, it was a damning penalty, making him tentative and nervy.
But praise to the Austrian, facing a foe to whom he trailed 12-1 in matches played calls for enormous resolve and self-belief and he delivered.
Had Thiem glanced across at Nadal’s celebration when he netted to give the Spaniard the third set, he might have been tempted to pack it all in there and then, Nadal pumping his left arm vigorously, his emotions and energy now solely positive.
But he pulled himself together.
“It’s a little bit demons in the head, like Roger (Federer) said. It’s true. Everybody has it," said a markedly relieved Thiem.
"I was rushing way too much. Changing a little bit tactic from all the match. That was wrong.
“Then of course it’s very tough to handle if you are out of five-all against Rafa. Match starts from zero again."
He is now into uncharted territory in Melbourne but has reached the last four French Open semi-finals (winning two) and has what it takes to defeat Alexander Zverev in Friday’s semi-final, holding a 6-2 lead over the German.
"I can't wait to be back," Thiem said.
Updates
After schooling the world No.1 Rafael Nadal, Dominic Thiem now faces fellow rising star Alexander Zverev for a shot at one of the all-time greats of the game – whether that happens to be Novak Djokovic or Roger Federer will be decided in Thursday night's semi-final.
And Thiem is warmly favoured for the battle of the young guns.
With the bookies, he's paying $1.58 for the win, with Zverev $2.40.
Djokovic, meanwhile, is a mighty $1.13 favourite to beat Federer.
And with that, the blog is closed for the night. Join us again tomorrow for Ash Barty's quest for the final – and Novak-Roger #50!
World No.1 Rafael Nadal exited the Australian Open just before midnight when he lost three tie-breaks to Dominic Thiem on an evening of controversy and angst.
Follow the match-deciding tiebreak below…
1-0 THIEM – A heaving baseline rally ends with a Nadal forehand wide. First blood to Thiem.
1-1 – Too cute, from Thiem. Tries an forehand slice drop shot, but can't get it over the net.
2-1 NADAL – Oh dear… That is ugly from Thiem. He hits a backhand a long way long. All over the place. Now Nadal has the mini-break.
2-2 – Back on serve… four points lost on serve as Nadal cracks on another baseline rally.
3-2 THIEM – Again, Nadal is broken. This time he rips a forehand into the net. Fatigue? Hotter day in Melbourne today… but this has been a sloppy tiebreak.
4-2 THIEM – Amazing, what a rally. Superb court coverage from Nadal forces the extra shot after a determined half-volley, but this time Thiem holds his nerve and it lands in the court.
5-2 THIEM – Extraordinary rally. Thiem literally hits the deck, but recovers in time to chase down a Nadal backhand to the open court. Nadal eventually hits wide. Over?
5-3 THIEM – Big serve sets up an easy point for Nadal.
5-4 THIEM – Enormous ground strokes from both players. Nadal giving absolute power behind every backhand, and Thiem cracks.
6-4 THIEM. Huge serve out wide, unreturnable. Two match points.
6-5 THIEM. You are KIDDING ME! Thiem tightens up again, and smashes a forehand into the net. More life for Nadal…
6-6 – THE DRAMA. Thiem hits a sky-high defensive lob… and it is called in. Nadal immediately calls for a challenge. His tournament rides on this. And he's right. It's out. He stays alive – again!
7-6 THIEM. Incredible. Nadal comes to the net and Thiem responds with a stunning backhand crosscourt passing shot. It clips the net, but that's beautiful.
8-6 THIEM. The Austrian takes out world No.1 Rafael Nadal, who hits his 49th unforced error of the match.
World No.1 Rafael Nadal exited the Australian Open just before midnight when he lost three tie-breaks to Dominic Thiem on an evening of controversy and angst.
Follow the match-deciding tiebreak below…
1-0 THIEM – A heaving baseline rally ends with a Nadal forehand wide. First blood to Thiem.
1-1 – Too cute, from Thiem. Tries an forehand slice drop shot, but can't get it over the net.
2-1 NADAL – Oh dear… That is ugly from Thiem. He hits a backhand a long way long. All over the place. Now Nadal has the mini-break.
2-2 – Back on serve… four points lost on serve as Nadal cracks on another baseline rally.
3-2 THIEM – Again, Nadal is broken. This time he rips a forehand into the net. Fatigue? Hotter day in Melbourne today… but this has been a sloppy tiebreak.
4-2 THIEM – Amazing, what a rally. Superb court coverage from Nadal forces the extra shot after a determined half-volley, but this time Thiem holds his nerve and it lands in the court.
5-2 THIEM – Extraordinary rally. Thiem literally hits the deck, but recovers in time to chase down a Nadal backhand to the open court. Nadal eventually hits wide. Over?
5-3 THIEM – Big serve sets up an easy point for Nadal.
5-4 THIEM – Enormous ground strokes from both players. Nadal giving absolute power behind every backhand, and Thiem cracks.
6-4 THIEM. Huge serve out wide, unreturnable. Two match points.
6-5 THIEM. You are KIDDING ME! Thiem tightens up again, and smashes a forehand into the net. More life for Nadal…
6-6 – THE DRAMA. Thiem hits a sky-high defensive lob… and it is called in. Nadal immediately calls for a challenge. His tournament rides on this. And he's right. It's out. He stays alive – again!
7-6 THIEM. Incredible. Nadal comes to the net and Thiem responds with a stunning backhand crosscourt passing shot. It clips the net, but that's beautiful.
8-6 THIEM. The Austrian takes out world No.1 Rafael Nadal, who hits his 49th unforced error of the match.
Fourth set: Nadal 6 – 6 Thiem
There are more surprises left in this one, you can feel it.
The crowd is warned about overly cheering during games, as it is proving a distraction for the players.
But Nadal has the experience and composure to hold onto that service game and again turn the blowtorch back on Thiem, who now has to serve to stay in the set – and force a tiebreak.
This time… he holds his nerve. Just. And we have a tiebreak.
Fourth set: Nadal 6 – 6 Thiem
There are more surprises left in this one, you can feel it.
The crowd is warned about overly cheering during games, as it is proving a distraction for the players.
But Nadal has the experience and composure to hold onto that service game and again turn the blowtorch back on Thiem, who now has to serve to stay in the set – and force a tiebreak.
This time… he holds his nerve. Just. And we have a tiebreak.
Fourth set: *Nadal 5 – 5 Thiem
Here we go. After a nervy Nadal hold, it will be Dominic Thiem to try and serve this one out and claim an enormous four-set victory.
But he tightens up and can't close it out.
Three forehand errors and a double fault gives Nadal the break back that keeps him alive.
How big of a momentum swing will that be? Can Thiem clear it from his mind? Nadal has a spring in his step!
Fourth set: *Nadal 5 – 5 Thiem
Here we go. After a nervy Nadal hold, it will be Dominic Thiem to try and serve this one out and claim an enormous four-set victory.
But he tightens up and can't close it out.
Three forehand errors and a double fault gives Nadal the break back that keeps him alive.
How big of a momentum swing will that be? Can Thiem clear it from his mind? Nadal has a spring in his step!
Fourth set: Nadal 3 – 4 Thiem*
Luck is favouring Thiem at this point and the look of concern is growing on Nadal's face as he realises he can't crack the Austrian's serve.
Holding his own serve is proving troubling enough, but he manages to do that, albeit having fallen behind 15-30.
You get the feeling Thiem will need to serve this out to progress to the semi-finals and knock out the world No.1.
Fourth set: Nadal 3 – 4 Thiem*
Luck is favouring Thiem at this point and the look of concern is growing on Nadal's face as he realises he can't crack the Austrian's serve.
Holding his own serve is proving troubling enough, but he manages to do that, albeit having fallen behind 15-30.
You get the feeling Thiem will need to serve this out to progress to the semi-finals and knock out the world No.1.
Fourth set: Nadal 1 – 2 Thiem*
Dominic Thiem has broken Nadal in the third game of the fourth set.
After saving two break points himself the previous game, Thiem produces some incredible defensive tennis to bring up a break point on Nadal's serve.
And the No.1 shanks a wild forehand to give Thiem the advantage.
"It's amazing. We've long known his offence is phenomenal, but tonight it's defence that is really stood out," says Jim Courier.
"It's been the surprise element."
Adds Lleyton Hewitt: "It's been Novak-like, how many balls he's been able to get back in court."