Schwarzer played in all of Australia's matches in the 2007 AFC Asian Cup. Although he made two good saves in the opening match against Oman, which finished as a 1–1 draw, he made an error which led to a goal in the 3–1 loss to Iraq. In the quarter-final, he could not match Japanese goalkeeper Yoshikatsu Kawaguchi during the penalty shootout, which saw the Socceroos get knocked out of the competition in their debut at the tournament. Schwarzer said that the penalty shootout in the Asian Cup quarter-finals was the first penalty shoot-out in his career that he had ever lost.