The South American team needed to win and hope that Spain defeat Nigeria to qualify, which they did 3-0 in Fortaleza.
Abel Hernandez broke the deadlock in just the second minute, before doubling his tally on 24 minutes.
Diego Perez got in on the act two minutes later, before Hernandez completed his hat-trick in first-half injury time.
Matias Aguirregaray was brought down by Nicolas Vallar minutes after the restart, giving Andres Scotti the chance to put his team 5-0 in front. However, his poor spot kick was saved down low by Gilbert Meriel.
Scotti's night did not get much better as he soon received his second yellow card for a foul on Steevy Chong Hue, meaning that he went off for an early bath.
Tahiti were reduced to 10 men eight minutes later as Teheivarii Ludivion left the pitch in tears after receiving his second booking.
Nicolas Lodeiro made it 5-0 on the hour mark before Aguirregaray was brought down inside the area once again, this time by Chong Hue. This time it was Hernandez who stepped up for his fourth goal of the game.
Liverpool striker Luis Suarez added two late goals to confirm an 8-0 thrashing.