Both teams failed to find the back of the net in regulation time with Ghana proving to be more clinical when the match went into the dreaded shoot-out.
The Black Queens thought they had taken the lead midway through the first half when Stella Nyamekye found the back the net, but the goal was ruled out for offside after a VAR review.
Ghoutia Karchouni and Marine Dafeur created numerous opportunities for Algeria to take the lead but Ghana goalkeeper Cynthia Konlan stood firm between the sticks.
In the penalty shoot-out, Dafeur had her penalty saved by Konlan while Ines Belloumou also had the agony of not converting her sport-kick.
Josephine Bonsu, Doris Boaduwaa, Chantelle Boye-Hlorkah, and Evelyn Badu all converted for Ghana to take into the last four of the continental tournament.
The Black Queens will now face host nation Morocco in the semifinals next week.
West Ham United have received a potential boost ahead of Saturday's Premier League trip to Bournemouth, with star forward Antoine Semenyo facing a late fitness test after picking up an ankle issue on international duty with Ghana.
Francis Abu's World Cup dream has been shattered in the cruellest possible way, with Toulouse FC confirming that the Ghanaian midfielder will miss the 2026 FIFA World Cup.
Maxime Lopez has emerged as one of Ligue 1's standout midfielders this season following his impressive return to French football.
Former Belgian youth international Francis Amuzu has made it clear that his decision to represent Ghana is driven by national pride, not the lure of playing at the 2026 FIFA World Cup.
