Belgium beat the last two editions' runners-up Netherlands in a penalty shootout 3-2.
The Netherlands had bounced back from 0-2 to force Extra Time with substitute Wout Weghorst scoring two goals late in the match.
Emiliano Martinez was Argentina's hero in the shootout as he made a couple of saves.
The Dutch lead the South American 2-1 in the World Cup, with two matches being drawn. However, it is to be noted that Argentina prevailed in one of those drawn games, via penalties in the semifinals of the 2014 edition.
No strangers to a bit of in-fighting in the past, this Dutch squad is very much united as they gear up to face Lionel Messi and company on Friday with a semifinal place up for grabs.
A proud Danny Blind watched his son score the Netherlands' second goal in a 3-1 win over USA.
The Dutch became the first team to reach the quarterfinals at Qatar 2022.
Substitute Haji Wright scrambled in a reply for the United States in the 76th minute to give the Americans hope but Denzel Dumfries's volley sealed a seventh quarterfinal appearance for the Dutch.
Group A toppers the Netherlands meet USA in the first round of 16 match.
Cody Gakpo netted his third goal in three games as the Netherlands comfortably beat World Cup hosts Qatar 2-0.