Iran champions and AFC Champions League quarterfinalists Sepahan’s hopes of a domestic double were dashed when they were beaten in the last eight encounter by Persepolis 4-2 on penalties.
Both the teams failed to break the deadlock in an entertaining 120 minutes of action.
Sepahan’s Hadi Aghily and Ibrahima Toure hammered their efforts wide of target while on the other side only Moataba Shiri's shot came off the woodwork.
Youngster Hamidreza Aliasgari got the party started when he converted the Reds' final shot.
Persepolis now have to travel to Ahvaz to face Foolad in the semi-final on Thursday, while rivals Esteghlal will host Malavan Anzali on the same they to determine the second finalist.
The winner of the Hazfi Cup will qualify for next year's AFC Champions League.
While Sepahan, Esteghlal and Zob Ahan have already qualified for next year's competition, Hazfi Cup title holders Persepolis have only finished fourth in the league and need to defend their title for a ACL spot.