Alice Schlesinger has lost to Portugal's Ana Cachola in the last 16 of the women's -63kg category.
Cachola got the victory after hitting a yuko with just 19 seconds left, despite Britain's Schlesinger being on top throughout the bout.
Schlesinger, who could not hit the right technique at the right time, received one penalty in the fight compared to Cachola's two.
Cachola will now face Clarisse Agbegnenou of France in the quarter-finals.
It is a disappointing result for Schlesinger, who changed her allegiance from Israel to Great Britain a couple of years ago.