Delaney swam the backstroke leg in Australia's winning effort in the heats of the 4x100 metre medley relay on Saturday.
Australia completely changed its line-up for Sunday's final with 100m backstroke bronze medallist Hayden Stoeckel replacing Delaney.
Australia finished second behind the United States, giving Michael Phelps a record eighth gold medal in the one Olympics. Both teams were inside the old world record set at the Athens Olympics.
Delaney had missed a place in the final of the 200m backstroke after coming sixth in his semi-final in 1:57.73 minutes.
He recorded the 10th fastest time, less than a second from making the final.
Earlier that week Delaney came fifth in the final of the 100m back, an outstanding effort for a local swimmer who is only starting on his National Campaign.
Medal shows that Delaney is world class, 18 August 2008
Ashley Delaney's Olympic campaign has come to end. Although he returns home without an individual medal, Delaney ranks as one of the world's best backstroke swimmers.
He finishes his Olympic debut with a finals 5th place and a personal best time. He also swam in the 4 x 100 medley relay qualifying event which secured Australia a place in the final. The Australian team won a silver medal and, along with the finalists, members of the qualifying team also won a silver medal.
The 22-year old former Traralgon and Sale swimmer, who now swims with the AIS in Canberra, struck form at the Australian Championships in March. He won the 100 metres backstroke in Australian record time and defeated former Olympic medallist, Matt Welsh. In the 200 metres event Delaney finished second to his rival Hayden Stoeckel.
Both swimmers were nominated for Beijing, with Delaney also selected for the FINA World Short Course Championships in April. The Championships were an important milestone for Delaney, and he won third place in the 50 metres backstroke as well as taking Australian short course records.
At Beijing however Delaney has been eclipsed by Stoeckel. Both swimmers made the 100 metres backstroke final with Stoeckel finishing in a dead-heated 3rd place. He had beaten Delaney, who was awarded 5th place, by just a touch.
In the 200 metres backstroke Delaney was eliminated in the semi finals while Stoeckel finished 6th in the final. Stoeckel also achieved Australian records in both backstroke events. In consequence, Stoeckel was selected into the 4 x 100 medley relay final in which Australia finished second. Delaney swam the qualifying round, but has also been awarded a silver medal.
In an interview during the Games Delaney generously praised Stoeckel's 100 metre performance, saying it had been inspirational to him.
With both Delaney and Stoeckel now firmly established at world level, who knows how much they will press each other to even greater results? May the inspiration continue!