With Dortmund and Paris Saint-Germain cruising in Germany, a win at home against Milan would have been enough for Newcastle to advance.
They also took the lead after just over half an hour through a great shot by Joelinton.
But with the hour played, Christian Pulisic ensured that the CL play-off dream was snuffed out at St. James’ Park.
Shortly after, Alexander Isak was substituted in favor of Anthony Gordon, but he failed to find the net.
Instead, it was Milan who scored 2-1 through substitute Samuel Chukwueze.
Dortmund won the group ahead of PSG. Milan continues to play in the second round of the Europa League playoffs, while Newcastle must focus on the league game in the Premier League.