It's a remarkable achievement for a squad who were nearly wound up two years ago as Scottish Rugby examined ways to save money and were considering no longer competing full-time on the World 7s circuit.
The 28-21 quarter-final victory was not only the first time the Scots had beaten New Zealand on the sevens circuit, it was the first occasion on which any Scottish team had defeated a New Zealand representative side at any level since the nations first met in a 15-a-side match in 1905.
England will have to do it the hard way if they are to become the first country to win their home event on the World Series this season despite going through pool play unbeaten on day one of the London Sevens. The result also means they qualify automatically for the Sevens World Cup in San Francisco next year.
Sunday's Cup quarterfinals will see United States play Australia, New Zealand face Scotland, England meet South Africa and Argentina take on Canada.
A different Scotland side ran out for the second half, with Dougie Fife scoring two tries to start the fightback.
"I'm proud of the players and I'm proud of the staff, " said MacRae.
With two minutes to go, the visitors took the lead through an unconverted try from Riddell after an excellent break by Scott Wight. "You couldn't write a script like that".
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It was 12-5 when Werner Kok raced through from the kickoff, but when the winger was sin-binned for an alleged neck roll, England scored the equaliser.
Against Fiji, it was a one sided match as Kenya only got one try late in the second half through a solo effort from Dennis Ombachi.
England were convincing in their 24-5 semifinal win over Canada before their final loss to the Scots.
With just seconds remaining and New Zealand leading 21-17, an eagle eyed assistant referee spotted eight black jerseys and told Argentinian referee Damian Schneider who awarded a penalty to red-clad Scotland.
"As a Scotland player you go through tough times", said Robertson.
Losing the opening game of the day by three points to Canada on the last play of the day put the islanders under some pressure and even though they saw off Japan easily in a 61-5 drubbing, the final game against the Kiwis was not as easy and the 27-21 final score put a spot in the top eight out of reach.