City had exited Europe's premier club competition at the quarter-final stage in each of the prior three seasons and faced the same fate again on Wednesday when Jude Bellingham opened the scoring after 15 minutes at Signal Iduna Park.
That effort would have been enough to take Dortmund through on away goals after a 2-1 defeat in the first leg in Manchester, but Emre Can's second-half handball allowed Riyad Mahrez to level from the penalty spot.
Although BVB attempted to chase the game again, Phil Foden - the match winner eight days earlier - struck once more to maintain City's quadruple bid and tee up an intriguing last-four encounter with Paris Saint-Germain.
8 - Manchester City boss Pep Guardiola has reached his eighth UEFA Champions League semi-final, now the joint-most in the history of the competition, alongside José Mourinho. Master. #UCL pic.twitter.com/BtUwe1YfYn— OptaJoe (@OptaJoe) April 14, 2021
This was good preparation for that stern test, at least for 45 minutes, with Bellingham superb again and belatedly able to net his first Champions League goal, having had an effort ruled out in the first encounter.
Mahmoud Dahoud's shot ricocheted to the feet of the England midfielder, who calmly controlled just inside the area and placed a fine finish high to Ederson's left, the goalkeeper's palm only helping the ball find the top corner.
Manuel Akanji headed too close to Ederson three minutes later, before City rallied and Kevin De Bruyne crashed a right-footed effort against the crossbar.
But Bellingham remained at the centre of the action and produced a stunning, stretching block when Mahrez appeared certain to score.
There was no stopping Mahrez 10 minutes into the second half. Can was penalised when the ball bounced off his head onto an outstretched arm, allowing the City winger to smash in the subsequent spot-kick following a lengthy VAR review.
As Dortmund attacked and Mats Hummels nodded over, De Bruyne sought to pick them off on the counter.
Although the City captain's dazzling run ended with a save from Marwin Hitz, the following corner went short to Foden, whose blast squeezed past the goalkeeper and in via the post to put the tie to bed.