Netherlands defeated mighty South Africa by 38 runs at the Cricket World Cup on Tuesday as the European outsiders humiliated the Proteas for the second time in a year.

Chasing 246 to win from a rain-reduced 43 overs after Dutch captain Scott Edwards made a crucial 78 not out, South Africa, one of the tournament favourites, were bowled out for 207 in the shadow of the Himalayas.

In November last year, the Dutch sent South Africa crashing of the Twenty20 World Cup in Australia.

The victory was the World Cup's second major shock in three days after Afghanistan defeated defending champions England on Sunday.

"When we came into the tournament we wanted to have a chance at playing semi-finals and if you want to do that you've got to beat teams," said Edwards.

"Obviously South Africa are probably one of the favourites the way they are playing so it is a big win for us."

South Africa skipper Temba Bavuma admitted it was a painful defeat.

"There is no point trying to forget what happened. It will hurt and it should hurt. Tomorrow we'll get back on the journey, our campaign is by no means over," added Bavuma whose indisciplined side earlier conceded 32 extras, including 21 wides.

There was no hint of the drama to come as South Africa eased comfortably to 36-0 in their pursuit.

However, four wickets then fell for the addition of just eight runs.

Quinton de Kock, who cracked back-to-back centuries against Sri Lanka and Australia, was caught behind for 20 off Colin Ackermann and Bavuma (16) fell three runs later.

Seamer Paul van Meekeren beat the defences of Aiden Markram for one before Van der Merwe's wily left-arm spin tempted Rassie van der Dussen into a rash reverse sweep with the catch taken by Aryan Dutt at backward point.

Heinrich Klaasen and David Miller steadily rebuilt the innings in a 45-run partnership before Logan van Beek broke through.

Klaasen was dismissed for 28 while Marco Jansen (9) saw his stumps scattered by Van Meekeren as South Africa slumped to 109-6 and it was virtually game over when David Miller swung and missed at Van Beek after making 43.

Bas de Leede mopped up Gerald Coetzee and Kagiso Rabada before Keshav Maharaj's late, defiant 40 was ended by Van Beek.

Edwards played a brilliant innings while Van der Merwe shone with a late cameo as the Netherlands made a fighting 245-8.

Edwards's runs came off 69 balls and featured 10 fours and a six.

Van der Merwe, 38, hit a quickfire 29 off 19 balls. Together, Edwards and Van der Merwe put on a crucial 64 for the eighth wicket after the Dutch were struggling at 112-6.