Jurgen Klinsmann's men slumped to a 1-0 defeat by Germany in its final Group G game but still qualified despite Portugal defeating Ghana 2-1.
Thomas Muller's second half strike condemned the U.S. to defeat following a rain soaked contest in Recife.
But Cristiano Ronaldo's late strike for Portugal inflicted defeat on Ghana and ensured the U.S. qualified in second place on goal difference.
Here in the Tennessee Valley, hundreds turned out for a watch party at Straight to Ale Brewery in Huntsville. Despite the loss Thursday, soccer coach Alex Tomlinson said its great to see the sport growing. He say's the turnout at the watch party sends a positive message.
"Soccer in Huntsville has grown exponentially in the last several years", Tomlinson said. "And just seeing the World Cup, where it is today, and the U.S. in the 'group of death' doing what they're doing, it's great."
He said the professional soccer team in Huntsville, the Rocket City United, is a great role model for young kids. With the American success in the 2014 World Cup this far, Tomlinson hopes maybe the younger crowd will get into the sport.
Team USA moves on to the 'knockout' round. They will play Belgium Tuesday in El Salvador.
Germany will play Algeria, who finished second behind Belgium.