Wales Under-20 ended their World U20 Championship campaign in sixth place as they were beaten by Australia in the fifth-place play-off.
Australia led 14-5 at half-time thanks to tries from Adam Korczyk and Lukhan Lealaiaulolo-Tui, while Wales scored through Josh Adams.
Folau Faingaa and Jonah Placid stretched Australia's lead, only for Elis Wyn Benham to cross for Wales.
They scored another through Lloyd Lewis, but Australia held on to win.
Australia started strongly and scored the game's opening try through number eight Korczyk, converted by Andrew Deegan.
Wales responded as wing Adams dived over in the corner, only for Australia to replenish their lead as lock Lealaiaulolo-Tui powered over from a rolling maul.
That left Wales trailing 14-5 at half-time, though they chipped away at that deficit with two penalties from Daniel Jones.
Tries from front-rower Faingaa and player of the tournament nominee Placid put Australia in control, but Wales refused to yield.
Benham scored out wide and Australia's Campbell Magnay was sent off for a second yellow card.
Wales' Lewis touched down for a late try but Australia withstood the pressure to claim victory.
Wales Under-20 v Australia:
Dafydd Howells (Ospreys/ Neath); Elis-Wyn Benham (Blues/ Cardiff), Joe Thomas (Ospreys/ Swansea), Owen Watkin (Ospreys/ Bridgend), Joshua Adams (Scarlets/ Llanelli); Daniel Jones (Scarlets/ Carmarthen), Tomos Williams (Blues/ Pontypridd); Luke Garrett (Dragons/ Cross Keys), Ryan Elias (Scarlets/ Carmarthen), Dillon Lewis (Blues/ Pontypridd), Seb Davies (Blues/ Pontypridd), Adam Beard (Ospreys/ Aberavon), Tom Phillips (Scarlets/ Llanelli), Ollie Griffiths (capt, Dragons/ Newport), Harrison Keddie (Dragons/ Ebbw Vale).
Replacements: Torin Myhill (Scarlets/ Llanelli), Keagan Bale (Dragons/ Cross Keys), Joe Jones (Blues/ Cardiff), Lee Taylor (Carmarthen Quins), Liam Belcher (Blues/ Pontypridd), Kieran Hardy (Scarlets/ Carmarthen), Lloyd Lewis (Dragons/ Newport), Barney Nightingale (Drgaons / Newport).