Dixon did finish as the top Brit, coming one place ahead of team-mate Noah Williams, but just one poor dive cost him the chance of a medal.
The 19-year-old was fourth at the halfway mark, having scored more than 73 points for each of his opening three dives.
But his hopes of making the podium went in the fourth round when he dropped his new 109C – forward four-and-a-half somersaults in tuck position – dive and scored just 37.00 points.
He did recover brilliantly and scored 71.40 and 72.00 points for his final two efforts, but the damage had been done.
The title went to Ukrainian 13-year-old sensation Oleksii Sereda, who became the youngest European champion, beating Tom Daley’s previous record by three months.
Daley had won the 2008 title at 13 years and 10 months, whereas Sereda was 13 years and seven months. Sereda, who finished fourth at the recent World Championships, scored 488.85 points.
Dixon had won a bronze medal with Williams in the men’s 10m synchro event with a personal best total.
He said after the championships: “Had some ups and downs at this year’s Europeans. A silly mistake led to a disappointing individual result but happy to come away with another European medal in synchro with Noah Williams.”