The tournament hosts lost the shootout 3-2 after once again seeing their hopes unravel from the penalty spot, having also been eliminated by Cameroon in Wednesday's semi-final in similar fashion.
Morocco appeared to have steadied themselves when they converted their opening two penalties against Algeria, but the Atlas Lionesses then missed three in succession.
Algeria also struggled from the spot, failing to score with two of their first four attempts, before Ines Belloumou converted the decisive penalty to secure the bronze medal.
The result capped a difficult few days for Morocco, who had entered the tournament hoping to go one better after finishing runners-up at the previous two editions.
Sister act ushers underdogs Malawi into WAFCON final against Cameroon
Late Algeria equaliser forces shootout
Morocco had taken the lead in the 37th minute through Kautar Azraf, putting the hosts on course to end their campaign with a victory in front of their home supporters.
But Algeria remained in contention and found their equaliser seven minutes from the end of normal time, when Lina Boussaha struck in the 83rd minute.
With no extra time in the third-place play-off, the match went directly to penalties – and Morocco were once again left frustrated.
Their semi-final defeat to Cameroon had followed a similar pattern. Morocco missed three consecutive penalties in that shootout, with all three saved, allowing Cameroon to advance to Sunday's final.
Saturday's defeat means Morocco have now fallen short of the title at three successive WAFCON tournaments staged on home soil.
They reached the final in both 2022 and 2024, finishing runners-up on each occasion, before having to settle for fourth place this time around.
For Algeria, meanwhile, victory represented a significant achievement as they secured third place and confirmed their place among Africa's leading sides.
Morocco, Algeria reach WAFCON semi-finals and World Cup
World Cup place provides consolation
Despite the disappointment, Morocco will leave the tournament with one major prize already secured – qualification for next year's 32-team Women's World Cup in Brazil.
By reaching the WAFCON semi-finals, the Atlas Lionesses guaranteed their place at the global tournament alongside Algeria and Sunday's finalists Cameroon and Malawi.
Malawi have emerged as one of the surprise packages of the competition and will face Cameroon for the continental title.
Africa could ultimately have as many as six representatives at the World Cup, with South Africa and Ghana still able to qualify through the inter-continental play-offs.
(with newswires)



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