The Venezuelans were already through having earned four points from their opening two matches including a draw with Brazil and coach Cesar Farias saluted his charges.
"We thought this would be a very difficult group, that maybe we might go through - but in third place. But we came through unbeaten. We worked hard and we merit respect."
Paraguay needed the draw to sneak into the quarters as one of the best two third-placed teams - their three points and zero goal difference sees them pip Group A's third-placed team Costa Rica, who slid to a minus two goal difference after losing 3-0 in their final game to hosts Argentina.
Paraguay's 'Guarani' appeared well on their way to the top of the group after goals from Antolin Alcaraz on the half hour and then Lucas Barrios and Christian Riveros after the break put them 3-1 to the good, recovering from a fourth-minute Venezuelan opener from Salomon Rondon.
But in astonishing Wednesday's finale, Nicolas Fedor levelled on 90 minutes and Grenddy Perozo then netted with a diving header three minutes into stoppage time to give the Venezuelans five points.
Holders Brazil could match that if they beat Ecuador in the late game in Cordoba.
A two-goal win would see the Brazilians top the group on goal difference.
Roque Santa Cruz almost put Paraguay into an early lead but they were caught as the Venezuelans raced to the other end and Rondon fired home a low angled drive.
The knowledge that a defeat would sent them out galvanised the Paraguayans and Santa Cruz and Barrios began to weave their spell.
On 33 minutes they were level as Alcaraz drove home left-footed.
That calmed their nerves and the Paraguayans saw their German-based Brrios put them ahead just after the hour following a corner from Haedo Valdez.
Venezuela began to press for an equaliser but left themselves open as Riveros headed in following a freekick from Aureliano Torres.
With five minutes left on the clock that should hae been it but Fedor nudged in an effort which looked destined to be a consolation before the Vinotinto stole a point right in the dying embers of injury time as Perozo scrambled to nod in after his own keeper Renny Vega had launched himself into the fray.
"Thank God we managed a draw after suffering so much," said a breathless Vega.
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