Hapoel Kiryat Shmona were unable to build on their first leg heroics in Moscow as they bowed out of the Europa League following a 2-1 defeat in Larnaca on Thursday night.
Having held Dynamo Moscow 1-1 in the away leg, Hapoel made a dream start in the return match, with Roi Kehat putting the Israeli cup winners ahead after 11 minutes.
But Dynamo hit back soon after, with German striker Kevin Kuranyi drawing the visitors level from the penalty spot midway through the half.
The Russians scored a second away goal when Aleksei Ionov fired home as they ran out 3-2 winners on aggregate.
Maccabi Tel Aviv will find out their opponents in the Europa League playoff round later today.