Alexia Putellas scored twice as Spain dismantled England and seriously harmed the Lionesses' chances of automatic qualification for the 2027 Women's World Cup.
England travelled to Majorca knowing anything but defeat would secure their spot in next year's tournament, having impressed in a 1-0 win over Spain in April.
But with only the group winners automatically going through, a commanding victory puts Spain in the driving seat with one game to go.
England had won their previous four matches and must get back to winning ways against Ukraine on Tuesday, and hope Spain drop points against Iceland, to recover their position at the top.
Two-time Ballon d'Or winner Putellas, who announced her departure from Barcelona last week, netted twice, scoring in each half.
Her first, after Patri Guijarro had given Spain an early lead, dented England's confidence in a poor opening half, and she made things worse for Sarina Wiegman's side when she reacted quickest to Lucy Bronze's goalline clearance to make it 3-0.
The Spanish superstar, who is being pursued by Women's Super League side London City Lionesses, showed why she is considered one of the world's best.
She went off to a standing ovation before substitute Claudia Pina made England's night even worse with a fourth goal late on.
England barely threatened and it was a quiet evening for Spain goalkeeper Cata Coll with the visitors failing to manage a single shot on target.
Keira Walsh's effort flew over the bar in the first half and Georgia Stanway later drove a shot wide of Coll's right post.
It was always going to be a challenge to beat the world champions in Majorca, but England were never in the battle and it leaves them facing a potential play-off route and with work to do to book their place in next year's competition.