After the Czechs scored the next two goals, USA forward Jim Slater netted the equalizer in the second period to make it 2-2, a score that held until overtime.
The goal was Donato's fifth of the tournament eclipsing his father Ted's four goals from the 1992 Albertville Winter Games.
Four years after his shootout heroics in Sochi, Oshie could only watch helplessly halfway around the world as Chris Bourque, Ryan Donato, Marc Arcobello, Troy Terry and Bobby Butler got their chances against the Czech Republic with a berth in the semifinals on the line.
"I kind of lost the puck. Obviously it didn't go the way I wanted it to and we wanted it to, but it comes down to those things".
Neither team could tally the game-winner in OT, so the game went to a shootout.
The Czech team will compete for the spot in the final with the victor of the Russian Federation versus Norway match.
Unlike the Czech squad, which brought more worldwide experience and had beaten Canada in a shootout in the preliminary round, the USA roster was only announced a month before the Opening Ceremony, giving the team little time to gel as a team.
"It was our dream before the tournament to go this far, but I really hope it's not the end", Francouz said.
Slater scored in regulation during Wednesday's matchup. Play hard, compete, leave it all on the ice, represent us that way.
That chance is gone for the US, which improved throughout the tournament but looked somewhat worn out after needing to play Slovakia in the qualification round Tuesday while the Czechs rested.
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He is leaving Finance Minister Mathias Cormann as acting prime minister in place of Joyce while in the USA next week. Only a vote of his own lawmakers could oust Joyce and none of them have publicly asked for his resignation.
"Sorry to let him down on that on", Terry said. Eric O'Dell pushed Veli-Matti Savinainen into Ben Scrivens in the 2nd period meaning that Canada had to make a goalie change and Scrivens was sent to the room while Kevin Poulin took over the netminding duties to keep Canada's net safe. The Czech Republic's Pavel Francouz stopped 18 in regulation and overtime.
"He's always been someone that can raise his game in the big games", Chuck Terry, Troy's father, said.
In regulation, Terry skated around opponents as he had done all tournament, and 6:20 in gave the USA a 1-0 lead.
One of the men's team's college stars, Harvard's Ryan Donato struck first with a goal six minutes into the first, but the lead lasted just nine minutes, when Jan Kolar answered for the Czechs.
Former NHLer Jim Slater, whose shorthanded breakaway equalised for the Americans in the second period, was dismayed as well.
The teams traded chances in the third period, none better than American Brian O'Neill clanking a shot off the cross bar with just under three minutes left on an odd-man rush. The US got a power play at the end of regulation and into overtime but never got a shot on net.
Francouz didn't overreact, and covered the puck.
"It's a huge disappointment because we were right there", U.S. captain Brian Gionta said.
The Czechs move on to face either the Russians or Norway.