Michael Essien stole a late goal at the Mestalla to earn Chelsea a semi-final berth where they are likely to play Premiership rivals Liverpool.
The west Londoners are chasing an unprecedented quadruple of trophies this season and it was the Blues' Ghanian star who kept the dream on track.
Essien scored a sensational goal in the 91st minute to put the English champions through to the last four.
Essien, who was playing his first game since early March because of injury, drove home an angled drive in injury time to put Valencia out in the most dramatic fashion.
Jose Mourinho's men had looked dead and buried in the first half when Los Che's Fernando Morientes, who had earlier struck the post, gave the hosts a 2-1 aggregate lead when he volleyed home Luis Miguel's right-wing cross.
But Andriy Shevchenko levelled matters through a typically scrappy Chelsea goal, before Essien etched his name into Stamford Bridge folklore.