Kevin Nolan struck twice to level for Wanderers in the second half of their Colombino Trophy semi-final but a late goal from Jesus Vazquez cost them.
Bolton will now play the losers of the other semi-final between UEFA Cup winners Sevilla and Sporting Lisbon in their next game.
The injury-depleted Trotters fell behind after 23 minutes when Antonio Sanchez de la Calle turned in a rebound after a Vazquez header was cleared off the line by Idan Tal.
Nolan pounced to equalise six minutes into the second half but Recreativo immediately restored their lead as Polish youngster Blazej Augustyn conceded a penalty and De La Calle converted.
Nolan struck again with a 70th-minute free-kick but Vazquez had the final say three minutes from time. Tweet
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A bad pre-season doesn't necessarily mean that we will struggle next season. In 2000 we lost most of our games and had to rely on trialists yet the following summer we had gained promotion to the Premiership