The world No. 55 strained every sinew to level the score at 1-1 after a gripping second set which lasted an hour and 11 minutes.
Both players were going toe-to-toe, with Nadal left kicking himself for surrendering his first match point at 5-4 up after a short backhand return.
The sheer grit and determination from both players led to an inevitable tie-break, as Thompson’s superb forehand sealed an 8-6 win and swatted away two more Nadal match points in the process.
What followed from Thompson was seriously impressive, not giving Nadal an inch and breaking the 22-time Grand Slam winner again to move 3-1 up in the decisive third set.
The 29-year-old would go on to serve for the match and claim a hold to 30 after a point which felt like it would never end.
However, when Nadal finally hit a return past the baseline, Thompson secured what will go down as one of the finest victories of his career.
Meanwhile, it was an ultimately frustrating defeat for Nadal, who certainly managed to get the physical workout he needs ahead of his Grand Slam comeback at the Australian Open later this month.
Thompson reflected on the match as a whole and spoke about having to deal with a train honking as he contested that seemingly never-ending match point.
“I think that train needed some WD-40 in the whole match!” he joked in his on-court interview.
“It put us off a bit with that honking in the end, but it was too big of a point not to concentrate.
“To beat Rafa in Brisbane at home in a quarter-final – I think it’s my first semi-final on a hard court as well, I couldn’t be happier.”
Looking ahead to the challenge that Dimitrov will pose in the semi-finals, he added: “He’s in incredible form. He lost in the final at Paris last year and had a great year in the rankings as well, and pushed right up; he’s really on the right track.”