The New Zealand team has chalked up its first loss in the World Under 20 Ice Hockey Championship in Dunedin.

Game 5 of the tournament saw New Zealand take on Mexico, who were desperate for a win after a crushing defeat against China.

After the second period, the teams were tied at two, making for an exciting third period.

The game went into overtime, with the Kiwis not easing up on Mexico, and the score remaining tied.

A penalty shoot-out decided the match, with Mexico coming out on top, 3 points to 2.

Earlier in the day China dominated the Turkish team, winning 6 to 1.

New Zealand's set to take on Turkey tomorrow, before facing top team China on the final day of the competition.