The U.S., who had held the No. 1 spot since June 2017 and won back-to-back World Cups in 2015 and 2019, slipped out of the top two for the first time since FIFA introduced the rankings in 2003.
The USWNT recorded their worst performance at a World Cup after being knocked out by Sweden in a penalty shootout in the round of 16.
Meanwhile, Spain climbed from sixth to second after winning their first World Cup last weekend, while runners-up England and quarterfinalists France remained fourth and fifth respectively in the latest rankings published on Friday.
Australia dropped one place to 11th despite finishing fourth at the World Cup, with Japan (eighth) returning to the top 10 following a run to the quarterfinals. Co-hosts New Zealand remain 26th after their group stage exit.
Germany dropped four places to sixth and Olympic champions Canada fell three places to 10th after both sides failed to advance to the knockout rounds.
World Cup debutants Morocco were the biggest movers, jumping 14 places to 58th.