Bernardo Silva and Mateo Kovacic both missed from the spot as City were beaten 4-3 on penalties after their pulsating quarter-final tie ended 4-4 on aggregate.
Jude Bellingham brilliantly controlled a high ball with the outside of his foot and found Federico Valverde, who in turn fed Vinicius Junior in the box. Phil Foden also missed the target as City kept up the pressure but Josko Gvardiol needed to block a Dani Carvajal shot to prevent Real snatching a second on the break.
City pressed on with Grealish shooting at Lunin and their persistence finally paid off as Antonio Rudiger could only half-clear a cross from substitute Jeremy Doku and De Bruyne clipped home the loose ball.
Manchester-City Real-Madrid
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