The Black Caps have missed a chance to pick up a confidence-boosting win over Australia in their final warm-up ahead of the World Twenty20 tournament in Bangladesh.
Chasing 201 for victory, New Zealand finished on 197 for nine from their 20 overs at the Khan Shaheb Osman Ali Stadium in Dhaka.
Martin Guptill made 62 off 34 balls at the top of the order, putting on 61 for the second wicket with captain Brendon McCullum (37 from 18 balls). However late wickets halted the New Zealand chase.
Corey Anderson (29 from 17) and Luke Ronchi (21 from 15) looked to put New Zealand in a winning position after joining at 137 for five in the 14th over to put on a partnership of 51 runs. Needing 17 off the final two overs both Anderson and Ronchi fell in the penultimate over before the Black Caps lost another two wickets in the 20th over to fall three runs short.
New Zealand managed just one boundary off the final 12 balls as Mitchell Starc (2-21) and Nathan Coulter-Nile (2-31) did the job at the death for Australia.