A 1-1 draw against Russia on Thursday earned Halilhodzic's side a place in the knockout stages for the first time in the World Cup, where they will face Germany who sealed their place thanks to Thomas Muller's fourth goal of the tournament in a 1-0 victory over the USA.
1982 was the first the first and last time that Algeria competed at the World Cup finals, and the underdogs caused a major shock by beating the then European champions West Germany 2-1.
Despite two wins and only one defeat, they were eliminated in controversial fashion as Austria and West Germany faced each other in the final group game. A 1-0 win for the Germans was enough to take both sides through at the expense of Algeria,although Austria did not appear to make it difficult for their opponents.
The match was labeled a 'disgrace' and promped plenty of match-fixing conspiracies, although allegations were never proved and the result stood. Algeria now have their chance to gain revenge on Germany in their last 16 knockout game, which takes place on Monday 30 June at Porto Alegre.
Halilhodzic has revenge on his mind, saying: "We have not forgotten; Everybody has been talking about Algeria and Germany from 1982.
"Thirty-two years ago is a long time. I am very proud of what we have achieved tonight and we deserve to be here. I think Algeria played a heroic match and our qualification for the second round is perfectly deserved."
Algeria also found controversy in their crucial 1-1 draw against Russia on Thursday, when Russian goalkeeper Igor Akinfeev had to contend with a laser light being shone in his face seconds before Islam Slimani scored Algeria's equaliser.
Russia's coach Fabio Capello said: "The goalkeeper was unable to do his job. The laser was in his face. It is not an excuse. You can see in the footage."
Germany take on Algeria at 9pm on Monday night in their last-16 match of the 2014 World Cup, and you can compare all the odds for the tournament here.
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