The young Chile side were superb in the first half, and they got their just rewards after 19 minutes. Xabi Alonso lost the ball in midfield, but then a superb team move allowed Vidal to be free eight yards out, and he side stepped Casillas before rolling the ball into the net.
Spain was desperate to equalise before half-time but nothing was coming off the defending champions, and it got even worse for them three minutes before half time.
An Alexis Sanchez free kick looked to be in before Casillas got a hand to it, before punching the ball back into the area. The ball fell to Charles Aranguiz, and the midfielder poked home a great finish into the top corner.
After half-time, Spain come flying out the blocks at the beginning of the second half looking to put pressure on Chile, but it was to no avail.
Their best chance fell to Sergio Busquets, outstanding improvisation form the Chelsea bound forward Diego Costa provided an overhead kick across the six yard box. The ball fell to Busquets with the whole goal to aim out, but with his weaker foot, he somehow missed the target when it looked easier to score.
Spain kept trying, but the defence of the World Cup ended after just two matches. Chile was outstanding, and they will play Netherlands next looking to avoid Brazil in the last 16.