Pakistan failed to chase the mammoth 368 target set by Australia in the 18th match of World Cup 2023 at the M Chinnaswamy Stadium in Bangalore.
David Warner was named man of the match.
Pakistan lost by 62 runs as the green shirts - who were looking in control of the game - lost wickets at regular intervals.
After the defeat, Pakistan have slid to 5th spot on the points table while Australia have moved up to 4th spot.
Imam-ul-Haq and Abdullah Shafique remained top scorers with 70 (71) and 64 (61), respectively.
Pakistan skipper Babar Azam could only score 18 (14) while Muhammad Rizwan managed to reach 46 (40).
Adam Zampa remained the most successful Aussie bowler as he grabbed four wickets while Captain Pat Cummins and Marcus Stoinis took two wickets each.
Australia suffered a dramatic collapse in their match against Pakistan as they lost six wickets for just 43 runs after reaching 325-3.
Shaheen Shah Afridi was the star of the show for Pakistan as he took five wickets for 54 runs, including the key scalps of David Warner (163) and Mitchell Marsh (117).
Australia had started the match brightly, with Warner and Marsh putting on a record-breaking opening partnership of 259 runs.
However, after Warner was dropped on 10 and 105, Pakistan staged a remarkable comeback.
Shaheen Afridi dismissed both openers in quick succession, and then went on to remove Steve Smith (12), Glenn Maxwell (0), and Marcus Stoinis (10).
Australia eventually finished on 367-9, despite a late cameo from Pat Cummins (29).
Pakistan will now be looking to chase down this target and secure a crucial victory in their quest to reach the semi-finals of the World Cup.
A win for Pakistan would put them in a strong position to qualify for the semi-finals, while a loss for Australia would all but end their chances of progressing.
