Brazil extended their winning streak against Chile to eight as the five-time champions triumphed 3-0 in Ellis Park Stadium on Monday to advance into the World Cup last eight.
A two-goal blitz in the first half and an hour-mark goal ensured Dunga's side a quarter-final meeting on Friday with the Netherlands, who beat World Cup debutants Slovakia 2-1 in Port Elizabeth the same day.
The two sides appeared even until the ninth minute, when Brazilian midfielder Gilberto Silva struck a dipping right-foot shot from 30 meters, which was pushed out by Chile keeper Claudio Bravo. Moments later, Kaka fired wide from the edge of the box.
Brazil opened the scoring at the 35th minute when Juan rose above the packed area to head home a cross swung in by Maicon.
Just three minutes later, Robinho ran down the left and fed Kaka who set up for Luis Fabiano. The Sevilla player beat the offside trap before slotting past Bravo.
It was Fabiano's third goal in the 2010 World Cup finals and eighth in South Africa, where he had topped the 2009 Confederations Cup scorers with five goals.
With a two-goal lead, Brazil were in safe zone.
Brazil had won all 33 previous World Cup finals matches when they were 2-0 up and it have been seven years since Brazil lost a two goal lead in a competitive match - drawing 3-3 with Uruguay in a World Cup qualifier in November 2003.
Chile coach Marcelo Bielsa made a double change at the break, throwing in midfielders Rodrigo Tello and Jorge Valdivia to replace out-of-form forward Mark Gonzalez and defender Pablo Contreras.
The second half saw Brazil playing with unrivaled swagger and pressing the opponents as they wished.
At the 59th minute, Ramires stole the ball and ran down the center before passing to Robinhuo, who fired past Bravo to put the Brazilians 3-0 up.
"It was a nice game and the Chileans played well, but Brazil were able to play a balanced and controled game," said the Brazilian coach after the match.
"Chile is a very fast moving team, we have to use very rapid, aggressive players," Dunga added.
Chile coach said loopholes in his side's defence cost them dearly.
"Brazilians were quick to take advantage of loopholes in our defense," said Bielsa.