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Two goals from Azzedine Ounahi and an injury-time effort from Soufiane Rahimi sealed a 3-0 victory for Morocco in Houston that sends the African champions into a quarter-final meeting against the winner of France and Paraguay's game in Philadelphia later Saturday.
Morocco, who had produced a superb performance to eliminate the Netherlands in the last 32, were made to work hard for victory against the Canadians, who dominated the early exchanges of a physical contest at the NRG Stadium.
But the Atlas Lions made the crucial breakthrough just after half-time when Ounahi swept in a powerful low shot from the edge of the area.
Ounahi made victory inevitable eight minutes from time with his second before Rahimi's late goal on the counter-attack left Canada heading for the tournament exit.
The victory raises the prospect of a possible World Cup rematch between Morocco and France, who met in the semi-finals of the 2022 tournament in Qatar.