In a see-saw encounter with Sweden's Henri Hurskainen, world number 25 Ouseph finally prevailed 22-20 17-21 21-15.
It was not until the third game that the wristy Ouseph hit his stride, opening up a seven-point lead, but there was still a nervy finish before he won on his second match point.
The winning smash brought up a huge roar from the vociferous home crowd, who had been made to wait late into the evening session for Ouseph to appear.
Earlier Adcock and Bankier's medal hopes end as they slumped to a second defeat at Wembley Arena.
For the second day running they failed to build on a superb start and went down 11-21 21-17 21-14 to Germans Michael Fuchs and Birgit Michels.
The loss followed a similar result against Russia's Alexandr Nikolaenko and Valeria Sorokina on the opening day of competition at Wembley Arena and they now cannot progress to the quarter-finals from Group A.
The Anglo-Scottish pair had entered their first Olympics with high hopes after reaching the World Championship final at the same venue last year.
But while the world number 10s fed off the support of the vociferous home crowd to establish an early lead, they were unable to maintain momentum in their second outing at the Games.
The outcome renders their final group match against top seeds Zhang Nan and Zhao Yunlei on Tuesday meaningless in terms of the competition.
Adcock said: "We got a good start again but absolutely gutted - really disappointed.
"We did everything we could but that's the Olympic Games, it can be tough.
"Devastated, obviously. We lost winnable games. We worked so hard to get here.
"But we've got one more game and we want to repay the crowd who have supported us with a win."
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