A spirited performance was not enough to prevent the Volleyroos from going down to Serbia in four sets at the World Championships in Italy on Sunday.
Serbia won the first set before Australia fought back to level the match. But world No.11 Serbia proved too strong to eventually clinch the tie 25-20 21-25 25-17 25-19.
Max Staples was Australia's top scorer with 12 points.
Australia are currently ranked 4th in Pool C and need to win their remaining game against Tunisia on Monday (Tuesday AEST) to make it through to the next round.
The US lead Pool C from Serbia, Russia, Australia, Cameroon and Tunisia.
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