The wannabe singer, who made it into the top ten contestants on the reality TV series, found herself in the bottom two alongside boyband Young Men's Society after performing No Doubt's 'Just a Girl' at the live show.
Newland has faced elimination at every live show and was praised by all the judges for her strength and determination.
Her mentor Mel B, the only judge who voted to save Newland, told her: "I feel sorry for you. Three weeks in the bottom two - it can't be easy. You sang with your heart and soul."
She also said to Young Men's Society: "Boys, I'm totally shocked you're in the bottom two. You're one of the best [acts] in this contest."
Natalie Bassingthwaighte added: "This is crazy. Jacqui, your strength inspires me. What doesn't kill you only makes you stronger.
"YMS, Ronan's cockiness is for a reason. You guys are the best thing in this competition. I'm really surprised. I hate to say it but the person I'm sending home is Jacqui."
Guy Sebastian also described Newland as a "trooper", saying: "You've been knocked down but still came down and gave it everything."
After the elimination announcement, Newland said: "I think this competition has changed me. It's given me more self belief - I can do anything I set my mind to."
Mel B said that she felt "so sad" saying goodbye to Newland after Tyla Bertolli, another of her acts, left The X Factor last week. Bertolli later said that Mel B choosing Newland over her "sucked".
> Guy Sebastian slams 'X Factor' contestant's diva antics
> 'X Factor's Natalie Bassingthwaighte: 'Mel B is a trooper'
Watch Jacqui Newland's performance during last night's episode of The X Factor below: