With Dortmund having won 4-1 in the first leg, Madrid entered the match knowing that a 3-0 victory would take them to the final at Wembley next month.
The Spanish outfit had a host of chances to open the scoring in the early stages, but Dortmund held on to their first-leg lead at the interval.
Karim Benzema opened the scoring for Madrid after 82 minutes before Sergio Ramos added their second six minutes later, but they could not find the third as Dortmund held on to advance to the final of the competition.
Here, Sports Mole dissects the 90 minutes of action between the two European rivals.
On target: 7
On target: 3
Was the result fair?
There is no question that over the two legs Dortmund deserve to be in the final, but it was cruel on Madrid this evening. The home side could and should have scored at least twice in the early stages, but Dortmund were also guilty of missing a host of clear opportunities when the score was still goalless in the second half. Madrid must be credited for their late rally, but it was a case of too little too late.
Had Madrid taken their chances this evening, then they would have been in the final of the Champions League - it is as simple as that. The Spanish outfit left themselves with a mountain to climb following their mauling in the first leg last week, but they started with such purpose and intensity tonight. Despite waiting until the 82nd minute to open the scoring, they did have chances to secure an unlikely comeback. However, it is another semi-final exit for the current Spanish champions.
It was not a vintage display from the German outfit this evening, but they showed their mettle to hold off a host of pressure in the early stages. They settled into the match in the latter stages of the first half, but struggled for possession during the second 45 minutes. That said, they could have put the tie to bed with a host of chances in the second period. Overall, they deserve to be in the final of the competition.
Sports Mole's man of the match
Luka Modric: It was close between Modric and Dortmund defender Mats Hummels, but the Croatian just shades this accolade. It hasn't been the best of seasons for the former Tottenham Hotspur midfielder, but he showed his class this evening with a wonderful display in the middle of the park. His passing and calmness on the ball was of the very highest order.
Biggest gaffe of the match
It would be no exaggeration to say that Madrid could have been three goals ahead in the opening 18 minutes of the match. Mesut Ozil and Cristiano Ronaldo were both guilty of missing clear opportunities, which the Spanish outfit were ultimately made to regret.
Howard Webb had a really difficult first period in the red-hot atmosphere as the challenges flew in from both sides. However, the experienced Englishman remained calm and composed under pressure. The second half was just as testing as both sets of players called for decisions, but ultimately it was a solid display from the official.
Madrid: Jose Mourinho's side return to league action on Saturday when they welcome Real Valladolid to the Spanish capital.
Dortmund: Dortmund also resume domestic matters this weekend when they welcome Bundesliga champions Bayern Munich.