Ismaily became the third Egyptian side to exit the Arab Zayed Cup at the last-16 stage after suffering a 4-2 shootout defeat by Morocco's Raja in Casablanca after a 0-0 aggregate draw on Tuesday.
The Dervishes managed to hold Confederation Cup winners Raja to a 0-0 stalemate, the same result of the first leg, but some poor spot-kicks let them down in the shootout.
They wasted two efforts, including a tame one from skipper Hosni Abd-Rabou which was easily saved by the keeper.
Ismaily followed Cairo giants Ahly and Zamalek to the exit door.
Ahly bowed out after losing to UAE side Al-Wasl on the away-goal rule following a 3-3 aggregate draw while Zamalek lost on penalties to fellow Egyptian club Ittihad after a 1-1 aggregate draw.
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