It finished 2-2 after extra time but USWNT goalkeeper Alyssa Naeher saved from Vivianne Miedema and Aniek Nouwen in the shootout to seal progress to the semifinals.
The United States haven't been at their best in the Olympics so far and face in-form Netherlands who scored 21 goals in three games during the group stages.
The U.S. men's side take on tournament invitees Qatar in Texas for a spot in the final. Matthew Hoppe starts again for Gregg Berhalter's side. Follow LIVE with ESPN.