Coach Dunga has taken plenty of flak in his homeland for sacrificing some of Brazil's traditional flair in favour of a more disciplined approach but his players showed a frightening combination of both at Ellis Park.
GEAR:Get your Brazil shirt here
"We just had to come across Brazil as early as the second round. They're the best team in the world," said Chile's captain and goalkeeper Claudio Bravo after coming up against Brazil's best performance of the World Cup so far.
The win sets up a fantastic last eight clash on Friday in Port Elizabeth against a similarly talent-packed Netherlands.
Coming into the match on the back of seven consecutive defeats by Brazil, the Chileans nevertheless tried to take the game to their illustrious opponents, pouring forward in numbers at every opportunity in an evenly-matched first half an hour.
LIVE:Minute-by-minute coverage
Brazil's playmaker Kaka, back from suspension after missing the goalless draw against Portugal, was booked for a foul on Arturo Vidal and his team's forays were largely frustrated.
But Chile coach Marcelo Bielsa's game plan backfired when defender Juan rose high above a fragile-looking defence to power home Maicon's corner in the 34th minute.
From then, it was back to the Brazil of old.
In the 38th minute, the marauding Robinho cut in from the left flank to feed former world player of the year Kaka, who split Chile's defence to put Luis Fabiano through.
The in-form striker rounded the keeper to score his third goal of the World Cup and effectively end the contest.
FIRST OUT
Bielsa, who has transformed Chile into one of South America's best sides in the last three years, threw caution to the wind in the second half, replacing centre back Pablo Contreras with attacking midfielder Rodrigo Tello.
It did little to interrupt Brazil's dominance.
After 59 minutes, Ramires surged through the heart of the Chilean midfield and laid a short ball to Robinho, who curled a right foot shot past Bravo to make it 3-0 and delight the hordes of Brazilians packed into the stadium on a chilly night.
True to the attacking philosophy that earned them second place in the South American qualifiers, Chile kept pressing to the end, creating some chances but generally held at bay by a strong and determined Brazilian defence.
In contrast, Chile's back line looked vulnerable in the absence of Gary Medel and Waldo Ponce, both suspended.
"Brazil's superiority was too much for us and we unable to slow them down," Bielsa said.
The result meant Chile were the first of South America
