Portugal etched their name into UEFA Nations League history on Sunday night, claiming their second title in dramatic fashion with a 5-3 penalty shootout triumph over defending champions Spain following a pulsating 2-2 draw at Munich's Allianz Arena. Goalkeeper Diogo Costa emerged as the hero, saving Álvaro Morata's crucial penalty before Ruben Neves sealed the victory with an ice-cool finish.

The much-anticipated clash between European heavyweights lived up to its billing as a spectacle of attacking football. Spain drew first blood in the 21st minute when Martin Zubimendi capitalized on defensive confusion, slotting home after Diogo Costa and Portuguese defenders failed to clear Lamine Yamal's dangerous delivery. The lead proved short-lived as Portugal's marauding left-back Nuno Mendes announced his arrival on the scoresheet just four minutes later. The Paris Saint-Germain defender surged past Óscar Mingueza before unleashing a clinical angled drive into the bottom corner for his maiden international goal.

Intense battle unfolded throughout the Nations League decider (AP)

Spain regained the advantage in first-half stoppage time through Mikel Oyarzabal. The Real Sociedad forward connected perfectly with Pedri's incisive through ball to guide a first-time finish past Costa, reigniting memories of his Euro 2024 final-winning heroics. Portugal thought they'd equalized early in the second half through Bruno Fernandes, but the effort was ruled out for offside.

The Seleção's persistence paid off in the 61st minute when Cristiano Ronaldo wrote himself into the narrative once more. After Mendes' cross deflected into the air off Robin Le Normand, the legendary forward held off Marc Cucurella to volley home his 138th international goal—a strike that ultimately forced extra time.

Both captains exited before the decisive moments, with the 40-year-old Ronaldo substituted in the 88th minute and Spain's teenage sensation Yamal withdrawn during the additional period. After a tense, goalless extra time featuring half-chances and fraying tempers, the showdown progressed to penalties.

Diogo Costa's critical save against Álvaro Morata shifted momentum (EPA)

Portugal converted all five spot-kicks with ruthless efficiency while Costa's diving save to deny Morata proved decisive. Neves stepped up to hammer home the winning penalty, triggering emotional celebrations as Ronaldo was seen in tears on the sidelines. The victory makes Portugal the first nation to win the competition twice, having previously triumphed in the inaugural 2019 edition.

Roberto Martínez, who took Portugal's reins last year, praised his squad's resilience: "To twice come from behind against the European champions and show such composure in the shootout demonstrates the character we've built. This team writes its own history." Spain manager Luis de la Fuente acknowledged Portugal's clinical edge: "We dominated stretches but tournament finals are decided by small margins. When penalties arrive, it becomes a lottery."

The result concludes a thrilling Nations League campaign that saw Spain edge France 5-4 in a semifinal classic, while Portugal overcame Germany 2-1. The tournament continues to establish itself as a prestigious competition since replacing international friendlies in 2018.