The Black Sticks Women have been defeated 2-0 by the Netherlands in front of a huge crowd at the Hockey World Cup in The Hague.
New Zealand fought hard under pressure throughout the match but ultimately the 2012 London Olympic champions proved too strong.
The result means the Black Sticks Women must now win both remaining pool games against Japan and Australia to have a chance of making the semi finals.
Head coach Mark Hager said it was a difficult first half but it was pleasing to regroup and improve as a team in the second half.
"In the first half we weren't very good at all. We defended ok and Sally was good in the net but we conceded too many PCs and weren't going forward with the ball," he said.
"We're still a chance, we have to beat Japan and need a Dutch win against Aussie. That will mean it comes down to the game between us and Aussie and possibly goal differential.
"It's a tight competition and you never know, in tournament situations you still have a chance and have to play that way."
Emily Naylor said the girls scrambled well in the second half and will need to step up in the next must-win game against Japan.
"I think we scrambled well. Our defence was pretty tight in second half and our go forward was better so we will take that into the next game against Japan.
"When we're aggressive and have a go it works for us. We're not a team that's good at sitting back and defending so we've got to back ourselves and play with that belief to go forward."
In front of a packed crowd of 15,000, the Netherlands were fast starters and opened the scoring in just the fourth minute thanks to Carlien Dirske van den Heuvel.
Kiwi goalkeeper Sally Rutherford made some outstanding saves in the first half but couldn't stop a brilliant deflection through the legs of Kim Lammers to guide the Dutch into halftime up 2-0.
The Black Sticks played a much improved second half, especially on defence and managed to shut their opponents out from adding to the score line.
New Zealand created several good chances and lifted the intensity in the final 10 minutes but couldn't penetrate the Dutch defence.