The dramatic shoot-out followed on from 120 minutes that brought 10 goals with the final result ending in a 5-5 draw.
Three goals in the final fifteen minutes of the first half from Richard Keogh, Lewis Buxton and Theo Robinson gave the hosts a comfortable first half lead.
A goal from Andy Barcham at the beginning of the second half gave the visitors some hope however just a minute later, Buxton added his second.
The Iron though didn’t give up and were rewarded when Mike Grella and Bobby Grant struck to make it 4-3 with fifteen minutes remaining.
Hope though seemed to have been extinguished five minutes later when Tyson gave Derby a fifth and a two goal advantage.
Stoppage time brought Scunthorpe what seemed like a consolation when Connor Jennings pounced from a couple of yards to net his first Iron goal.
With the game entering the final minute of stoppage time though the Iron were awarded a dramatic penalty after Walker was brought down. And to the away supporters delight Bobby Grant stepped up to score and send the game into extra time.
The Iron lined up for their first competitive match of the season with three debutants starting for Scunthorpe.
Callum Kennedy, Mike Grella and Tom Newey all made their first starts for the Iron whilst David Mirfin, Christian Ribeiro, Josh Walker also started for the Iron after enjoying loan spells last season.
In goal for the Iron was Supporters' Player of the Year Sam Slocombe with Christian Ribeiro, Dave Mirfin, Tom Newey and Callum Kennedy making up the defence.
Midfield consisted of Andy Barcham, Jimmy Ryan, Josh Walker and Mark Duffy leaving Bobby Grant and Mike Grella leading the frontline for the Iron.
Scunthorpe also welcomed four new signings on the substitutes' bench with James Severn, Mark Hughes, Jordan Keegan and Callum Howe looking to make their first appearances in an Iron shirt. They were joined on the bench by Connor Jennings, Robbie Gibbons and Matty Godden.
Derby made the livelier start to the match with Theo Robinson denied a clear goal scoring opportunity in the third minute by a superbly timed challenge from Iron captain Mirfin from seven yards out.
Twelve minutes in Slocombe had his first save to make. After Newey had cheaply given possession away the ball eventually ricocheted through to Will Hughes just inside the box. The young midfielder attempted to blast the ball into the back of the net but couldn’t beat the alert Slocombe who tipped his powerful effort over for a corner.
Slocombe had to be at his best three minutes later when a Brayford cross found the head of Robinson in the six yard box. Once again though Slocombe showed his fine reactions, sticking a hand out and sending the ball over the bar.
Duffy had the Iron’s first shot on goal in the 19th minute from long range but his curling effort was easily seen wide by Derby keeper Fielding.
Slocombe was in action again in the 30th minute tipping over a fierce effort from Coutts out for a corner.
However, Slocombe could do nothing from the following corner. The corner whipped in from the goalkeeper's right found its way to Derby captain Keogh at the back post who nodded home to give the Rams a deserved lead.
Four minutes later it was déjà vu for the Iron as another dead ball brought another goal for the home side. After conceding a free kick wide on the right, Coutts once again aimed for the Iron back post for a similar result. This time though the cross was met by Keogh’s defensive partner Buxton who nodded the ball into the bottom of the net via a Slocombe touch.
With the game approaching the 40th minute Scunthorpe conceded a third from another set piece. Coutts delivering from the opposite side this time aimed his corner towards the near post at Jacobs who cleverly flicked the ball on with the outside of his foot towards the back post. After evading a number of Iron bodies the ball fell into the path of Robinson who from a couple of yards smashed the ball into the roof of the net.
Robinson nearly doubled his tally moments into the second half. After Jacobs had worked the ball onto his favoured right foot he curled a cross into the box that was met my Robinson. This time though the striker couldn’t hit the target with his header and drifted it just wide of Slocombe’s left hand post.
The Iron though gave themselves a lifeline ten minutes into the second half through last season’s top goalscorer Andy Barcham. Picking the ball up midway through the Derby half the winger dribbled his way into the box before nut megging the defender giving him a clear shot at goal. The winger then showed composure by clinically finishing into the bottom corner to give the Iron fans something to cheer.
However two minutes later it was the Derby fans who were celebrating another goal, once again from a set piece. The ball curled in towards the penalty box was once again met by Buxton who powered his effort into the top corner giving Slocombe no chance.
Robinson nearly grabbed his second from Derby’s next attack but his surprise effort towards the near post from a tight angle was well held by Slocombe.
Scunthorpe had their second of the game in the 63th minute through Grella. After being thread through by Ryan wide on the right Grella opted to shoot from just inside the box from an extremely tight angle. His effort though was well powerfully struck, crashing in off the far post and into the back of the net for the American first in an Iron shirt.
Derby had a great chance to finish the game in the 73rd minute when Derby where awarded a penalty after a trip on Keogh. Stepping up to take the penalty was Robinson but after stumbling his run up saw his penalty thwarted by a superb diving save from Slocombe at his left hand post.
That penalty miss looked to be costly moments later when the Iron got a third. The lively Duffy bamboozled the Derby full back to give himself a clear crossing opportunity. There the winger stood up a right footed cross at the back post which was eventually met by Grant to nod the ball home.
Only a good low save from Slocombe kept the hosts from restoring their two goal lead in the 84th minute. Running freely from halfway, Derby’s 17 year old midfielder Will Hughes got to the edge of the area before striking a fierce low effort at Slocombe’s right hand post only to be denied.
Derby would not be denied a fifth goal though and wrapped up the tie two minutes later. A good run from Coutts gave him opportunity to cross towards the near post finding Tyson unmarked to power the ball home from close range.
The Iron would get themselves a fourth goal in the final minute of stoppage time though. A powerful shot from Duffy inside the box couldn’t be held by Fielding inside the box spilling to the feet of Connor Jennings to net his first Iron goal.
With the game then nearing the final minute of stoppage time the Iron where awarded a corner. Despite clearing the initial corner the ball fell to the feet of Walker in the box, there Walker attempted to get past Jacobs with stopovers only to be brought down for a Iron penalty.
Stepping up for the Iron to send the game into extra time was Grant. And it was a task he did with relative ease rifling the ball into Fielding’s bottom corner to force extra time.
Christian Ribeiro nearly gave the Iron a dream start in extra time. Overlapping from his own half the right back took the ball all the way to the by-line before cutting inside. There from a tight angle the Welshman took aim at goal with his left foot but unfortunately for the Iron powered his shot just over the Derby bar.
With the momentum with the Iron, Grant was next to threaten the Derby goal in the 14th minute of extra time. A lovely clipped ball from Grella gave Grant a clear but difficult shot at goal from a tight angle. His effort though after beating the keeper ended up a yard wide of the bottom corner.
Derby’s first effort of extra time came in the second minute of the second period. A good advantage from the referee gave substitute Bennett a shot at goal from twenty yards. However not for the first time Slocombe was equal to the shot and palmed the effort away from goal.
Jacobs nearly made up for his penalty mistake in the 25th minute but saw his scuffed effort roll inches wide of Slocombe’s left hand post.
It was then left to penalties and after 18 penalties the Iron where victorious to send them into the second round of the Capital One Cup.
Derby 0 Scunthorpe 0 GRELLA MISSES
Derby 0 Scunthorpe 0 DAVIES MISSES
Derby 0 Scunthorpe 1 KENNEDY SCORES
Derby 1 Scunthorpe 1 TYSON SCORES
Derby 1 Scunthorpe 2 WALKER SCORES
Derby 1 Scunthorpe 2 BRAYFORD MISSES
Derby 1 Scunthorpe 2 DUFFY MISSES
Derby 2 Scunthorpe 2 KEOGH SCORES
Derby 2 Scunthorpe 3 GRANT SCORES
Derby 3 Scunthorpe 3 ROBINSON SCORES
Derby 3 Scunthorpe 4 NEWEY SCORES
Derby 4 Scunthorpe 4 JACOBS SCORES
Derby 4 Scunthorpe 5 RYAN SCORES
Derby 5 Scunthorpe 5 COUTTS SCORES
Derby 5 Scunthorpe 6 MIRFIN SCORES
Derby 6 Scunthorpe 6 BUXTON SCORES
Derby 6 Scunthorpe 7 JENNINGS SCORES
Derby 6 Scunthorpe 7 NAYLOR SCORES
The Iron won 7-6 on penalties.