Morecambe crashed out of the play-offs in agonising style winning this second leg 2-1 but losing a penalty shoot-out that saw Dagenham keeper Tony Roberts keep out three kicks.
The home side took the game to Dagenham right from the start at as they battled hard to find an equaliser, following their 2-1 first leg defeat.
Lee Elam and Stuart Drummond both went close for the Shrimps in the opening minutes before Wayne Curtis managed to hit the bar from close range when it seemed easier to score.
The home side kept up their relentless pressure but somehow Daggers went in level at the interval, despite having to defend a succession of corners in the closing stages of the half.
Five minutes into the second half Morecambe got their reward in rather fortuitous circumstances when Daggers defender Steve West turned an Elam cross into his own goal.
Things then got worse for West when he was presented with an open goal by Mark Janney but managed to mis-hit his shot wide of the target.
But that was a rare opportunity for Daggers, as the home side continued to dominate and it was no surprise when they grabbed a second four minutes from time.
Michael Stringfellow played in Adriano Rigoglioso and the striker made no mistake from the edge of the area to put the Shrimps in sight of the Britannia Stadium.
However with a minute to play Paul Terry collected the ball 20 yards out and curled the ball beyond Craig Mawson in the home goal to force extra time.
A lively 30 minutes of extra time saw Elam and Gary Thompson go close for the Shrimps and Tim Cole and Mark Stein squander opportunities for the visitors.
But nerves kicked in during the penalty shoot out as Roberts saved from Drummond and Dave McKearney missed the target as Daggers went 2-0 up.
However Mawson saved from Terry and Lee Matthews as the home side clawed back to 2-2.
Daggers' Tarkan Mustafa then rocketed his kick past Mawson to make it 3-2, before Roberts clinched his place in Daggers folklore by keeping out Jamie Murphy's weakly struck effort to send his side to the Britannia Stadium.