The towering Newcastle United custodian replaced Jasper Cillessen in the last minute of extra-time in an outlandish gambit by Manchester United-bound coach Louis van Gaal.
And the 1.93m (six feet three inches) Krul duly saved from Bryan Ruiz and Michael Umana, both low and to the right-hand corner, to win it 4-3 and set up a meeting with Argentina.
It ended a woeful Dutch run in penalty shoot-outs which previously stood at only one victory in five attempts at World Cups and European Championships.
"I knew before the game that the possibility was there. If we had one more substitution the manager said that he would consider putting me in goal and it happened," he said.
Also Read
"It's a dream come true for me. I watched the penalties. We've been preparing with all the goalkeepers and the goalkeeper coach."
Van Gaal, who has already redeployed forward Dirk Kuyt in defence and used a cooling break against Mexico to switch tactics, was proud of his latest "trick".
"We felt, all of us that Tim was the most appropriate 'keeper to stop penalties, because he has a long reach.
"We prepared Costa Rica's penalties and they prepared our penalties as well and we've seen that Tim Krul dived into the right corner time and time again.
"So all of us are a little bit proud that this trick has helped us through.