GB needed to win the knockout game to earn a place in the quarter-finals after finishing third in Group C.
It was not to be, however, despite pushing the Serbs – ranked eighth in the world and fourth in Europe – all the way.
Just as a fine margin went against them in their final group game with Germany, this was another very tight contest.
Captain Temi Fagbenle led the GB fight with 20 points and seven rebounds with Kristine Anigwe hitting 13 and taking 14 boards and Holly Winterburn also scoring 13 while dishing out six assists.
GB trailed by just a point at 29-28 at the half-time and remained in contention throughout, with Serbia maintaining and extending their slim advantage.
GB’s elimination from the competition means qualification for the Paris 2024 Olympics is now out of reach.