Chris and Gabby Adcock were eliminated in the quarter-finals of the YONEX All-England Badminton Championships by Tontowi Ahmad and Liliyana Natsir.
The Indonesian duo, aiming for a fourth successive title in Birmingham, came from 19-18 down in the decider to win 14-21, 21-18, 19-21 after 64 minutes.
The Adcocks were bidding to be the first British pair to win an All-England title since Nathan Robertson and Gail Emms in 2005.
"It is devastating," Chris told badmintonengland.co.uk. "We put ourselves in a winning position after a really tough start and worked hard to get there.
"Those points at the end were a blur. It felt like we had key chances but you can't afford to make key errors when they didn't. It is gutting."
He added: "We pushed a pair who haven't lost in three years and you could tell by their reaction that we had them scared."