The increasing autonomy of Large Language Models (LLMs) necessitates a rigorous evaluation of their potential to aid in cyber offense. Existing benchmarks often lack real-world complexity and are thus unable to accurately assess LLMs' cybersecurity capabilities. To address this gap, we introduce PACEbench, a practical AI cyber-exploitation benchmark built on the principles of realistic vulnerability difficulty, environmental complexity, and cyber defenses. Specifically, PACEbench comprises four scenarios spanning single, blended, chained, and defense vulnerability exploitations. To handle these complex challenges, we propose PACEagent, a novel agent that emulates human penetration testers by supporting multi-phase reconnaissance, analysis, and exploitation. Extensive experiments with seven frontier LLMs demonstrate that current models struggle with complex cyber scenarios, and none can bypass defenses. These findings suggest that current models do not yet pose a generalized cyber offense threat. Nonetheless, our work provides a robust benchmark to guide the trustworthy development of future models.