United's FA Youth Cup dream is over for another season, despite a creditable display against Everton at Bramall Lane on Monday night.
The Premiership outfit dominated much of the first-half, but a spirited second-half showing from the Blades saw the youngsters bow out of the competition with their heads held high after a tremendous run to date.
A penalty early in the second-half after goalkeeper Jake Eastwood was adjudged to have fouled first-half goalscorer Courtney Duffus put the tie beyond the hosts, despite Dominic Calvert-Lewin hitting the post.
The first sight of goal fell to the visitors in the 9th minute, Dyson was denied by Eastwood at the near post after Tyrone Duffus had capitalised on a missed place pass from Banton.
Everton's number seven again came close to open the scoring when heading inches wide at the back post following Thornily's deep cross from the left.
Eastwood again had to be alert to save a shot that bobbled off the surface from Courtney Duffus, before Charsley missed a guilt-edged opportunity for the Toffees, firing wide in front of the Kop with the goal at his mercy.
The Blades improved as the first-half progressed and after Ledson was booked for a nasty lunge on Dimaio, Scarisbrick inswinging cross was narrowly missed by the onrushing Paling.
Six minutes before the break, Everton took the lead. Thornily and Calvert-Lewin challenged for a ball inside the visitors half and as the ball ricocheted forward Courtney DUFFUS outpaced Banton before cutting inside and slotting the ball left-footed over the advancing Eastwood.
United had a further scare on the stroke of half-time when the goalscorer charged down an attempted clearance from Eastwood, but thankfully the ball went wide of the unguarded goal.
The visitors were quickly out of the traps from the restart and doubled their lead in the 52nd minute. Goalscorer Duffus raced through and clattered into the advancing Eastwood, with referee Evans electing to point to the penalty spot. Toffees skipper JONES duly converted from twelve yards.
United almost hit straight back though as Calvert-Lewin outpaced and fought off the attentions of Thornily before seeing his shot it the outside of the far post with goalkeeper Griffiths beaten.
Reed and Coustrain replaced Whiteman and Eyre and both substitutes had a positive impact on proceedings, with the latter coming close after neat footwork in the box.
At the other end, Everton were a live threat on the break and Eastwood had to be at his best to make a fine double save to deny Courtney Duffus.
It was United who finished strongest and arguably deserved a goal for their efforts, Cockerline came closet, but Griffiths managed to tip his powerful long-range effort over the ball, before Calvert-Lewin just failed to convert at the back post with the last action of the contest.
In front of crowd of 1,488 and the on looking Nigel Clough, United's youngsters did themselves proud against their top-flight opponents.
Blades: Eastwood, Paling, Scarisbrick (Cockerline 73), Whiteman (Reed 58), Evans, Banton, Dimaio, Calvert-Lewin, Eyre (Coustrain 58), De Girolamo, Khan.
Unused: Cheeseman, Owen.