
Nathan Waite saw his spot kick saved in normal time, when a Jack Lees cross was handled by a defender.
As per League Cup rules, at 0-0 at full-time, the game went to a penalty shoot-out.
Danny Edwards had Chasetown's first saved, Rushall took a 1-0 lead and then Danny Griffiths had Chasetown's second penalty saved too.
Rushall led 2-0 before Jermaine Johnson pulled it back to 2-1 and Curtis Pond saved a Pics kick, before Asa Charlton levelled at 2-2.
Rushall regained the lead at 3-2 before Jack Lees saw his kick saved and Rushall won 3-2 with a penalty to spare.