A winning goal from David McMahon counted for little as Ireland had to settle for second place in the six-nation invitational under-17 tournament in Israel.
McMahon rose superbly to head home Gary Dempsey's cross for his fourth goal in five games eight minutes into the second-half to beat Yugoslavia in Ireland's final match in Netanya yesterday.
But Saturday's 2-0 defeat to Hungary came back to haunt Brian Kerr's side.
Hungary beat Belgium 1-0 in their final game yesterday and though they were level on points with Ireland and had an inferior goal difference, the fact they had won the head-to-head with Ireland proved decisive.
Ireland suffered further disappointment early in the second half of yesterday's game when captain Shaun Byrne was sent-off for dissent.
It was a match Ireland dominated from start to finish and they should have won by far more against a disappointing Yugoslav team.
McMahon might have scored as early as the first minute but just failed to connect with a cross from Thomas Butler.
Yugoslav goalkeeper Degan Vogumovic then kept his side in the match with a string of saves in the second-half as Ireland took complete control. He twice thwarted McMahon before saving brilliantly from Dave Warren late on.
Republic Of Ireland: Murphy (Tranmere Rovers); Thompson (Nottingham Forest), McCrystal (Leeds United), Goodwin (Celtic), D Byrne (Stockport County); Miller (Celtic), S Byrne (West Ham United), Dempsey (Everton), Butler (Sunderland); Warren (Mayfield, Cork), McMahon (Newcastle United).
Ireland suffered their only defeat of the tournament when losing 2-0 to a much physically bigger Hungary on Saturday afternoon.
Ireland, jaded after four games in five days, fell behind after just four minutes when Gabor Pozssar's 25-yard free-kick looped over Joe Murphy and into the net.
Chances to equalise were missed before the break when Michael Lawless shot wide while Brendan McGill cracked a free-kick off a post.
Hungary, who later had a player sent-off for a bad challenge on Paul Forsyth, sealed their win on 54 minutes. Pozssar crossed from the right and Martin Oross arrived at the back post to head home.
Republic Of Ireland (v Hungary, Saturday): Murphy (Tranmere Rovers); Thompson (Nottingham Forest), Goodwin (Celtic), O'Callaghan (Barnsley), S Byrne (West Ham United); McGill (Sunderland), Miller (Celtic), Dempsey (Everton), Butler (Sunderland); Lawless (Blackburn Rovers), McMahon (Newcastle United). Substitutes: Forsyth (Blackburn Rovers) for Lawless (40 mins); Kelly (Belvedere) for Dempsey (56 mins); Warren (Mayfield) and Sullivan (Celtic) for McGill and McMahon (both 58 mins).
