FIFA on Tuesday said it had fined the Serbian FA (FSS) 85,000 euros (£74,700) and ordered a partial stadium closure for their next match after safety breaches and discriminatory fan behaviour during the World Cup qualifier against England.
The FIFA Disciplinary Committee cited "the use of lasers and inappropriate gestures, words and objects, disruption during the performance of national anthems, and discriminatory behaviour by some supporters" at the match earlier this month in Belgrade.
England romped to an impressive 5-0 victory despite the intimidating atmosphere.
Serbia must play their next qualifying game against Albania with at least a 20 percent reduction in spectators, the FSS said.
"The Football Association of Serbia will comply with the decision and take all necessary measures to prevent a recurrence of similar incidents in the future," the statement added.
The October 11 match against Albania has already been moved from Belgrade to Leskovac, a smaller southern city, due to security concerns.
The Dubocica Stadium in Leskovac, built two years ago, holds just over 8,000 spectators.
FIFA had earlier punished the FSS for "discrimination and racist abuse" by fans during a match against Andorra in June.
Serbia currently sit third in their group, with England top and Albania second.