Brazil's earlier victory over Costa Rica meant this Group E tie was set up to be an intriguing affair and it lived up to its billing.
A quick-fire start from Serbia saw them capitalise in the 5th minute when Aleksandar Mitrovic broke the deadlock.
Nemanja Matic intercepted a Swiss player and the ball fell to Dusan Tadic, who put a flighted ball into the box from the right flank.
With the ball floating in the air, Mitrovic rose above Fabian Schar to meet the ball, and expertly directed it in the left corner of the net, leaving Swiss goalkeeper Jan Sommer with no chance.
They were the clear dominant side early on with Mitrovic's physicality proving difficult to cope with but Switzerland grew into the half as time went on. Although they failed to create any clear cut chances.
In fact, it was Serbia who could have gone into the break two goals up with two great opportunities before the break.
A beautiful corner from Tadic gave Dusko Tosic a free header from five yards but he completely missed the ball, shocking team-mate Nemanja Matic.
Then Tadic unleashed a powerful strike from range which whistled just past the upper corner of the post, ensuring that Serbia went in at half-time with just a 1-0 lead.
The second half looked as if it would follow a similar theme until Switzerland grabbed a shocked equaliser in the 53rd minute.
Shaqiri's shot was blocked into the path of a rushing Granit Xhaka whose low effort took a deflection off Branislav Ivanovic's back to send it flying into the bottom right corner.
The goal flipped the game on its head and the Swiss could have edged in front minutes later but Shaqiri's curling shot smacked the corner of the post.
However, Serbia kept faith and arguably should have been awarded a penalty when Mitrovic was wrested to the ground in the box, preventing him from rising to meet a cross.
The referee amazingly called for a Swiss free-kick, with not even VAR getting involved in what should have been a clear decision.
The incident will be even more controversial given how the rest of the game progressed, with Switzerland grabbing a late winner in the 90th minute.
Shaqiri received the ball inside his own half and launched a blistering counter attack, fighting off Tosic the whole way.
Once entering the box he drew Vladimir Stojkovic off his line and slotted the ball past the goalkeeper and into the net to secure his nation a 2-1 victory.
It means Switzerland are in a great position to qualify for the Round of 16 as they are currently on four points and their final game is against the already eliminated Costa Rica.
Serbia, however, have a much more difficult task. They remain on three but face the dangerous Brazil in what will be the crunch match of Group E.
June 22, 2018