British number one Emma Raducanu is out of the Australian Open after losing in straight sets to Coco Gauff in a gripping second-round match.
The 20-year-old had battled an ankle injury before the Melbourne major.
Cameron Norrie, Britain's leading men's player, reached the third round after a late-night win over Constant Lestienne.
At 01:28 local time, 11th seed Norrie completed a 6-3 3-6 7-6 (7-2) 6-3 victory over the French world number 55, who was making his Grand Slam main-draw debut at the age of 30.
Andy Murray and Dan Evans could join Norrie in the third round when they play on Thursday, but Raducanu's exit means there is no British interest left in the women's singles.
Raducanu has not reached the third round of a Grand Slam since her stunning 2021 US Open win.
Had she been able to take one of two set points at 5-4 in the second - which would have forced a deciding set - it might have led to a different outcome.
"I think I had a lot of chances and I was creating quite a few. Losing obviously sucks a bit," said Raducanu.
"Coco is a great mover, great athlete. She puts another ball in play, so you feel like you have to squeeze it closer to the line and then she teases errors out of you."
Teenager Gauff, who famously reached the Wimbledon last 16 as a 15-year-old in 2019, is among the favourites to win the title at Melbourne Park.
"I told myself to hang in there, Emma played really good tennis towards the end of the match," said 18-year-old Gauff.
"It was a good quality match for the most part. This was a long anticipated match-up so I'm glad it was a good match for the crowd."
Raducanu conceded it has been a "great achievement" even getting on to court at Melbourne Park this week following the ankle injury she sustained in Auckland 13 days ago.
Rolling the left ankle meant she had to retire from the match against Slovakia's Viktoria Kuzmova, leaving Raducanu in tears when she left the court.
Before her opening match against Germany's Tamara Korpatsch, she said she "fully trusted" the ankle but her movement was always going to be tested more against Gauff.
The issue did not appear to be factor as Raducanu went toe-to-toe with the French Open finalist in a match packed with intense baseline rallies.
Raducanu grew in confidence as the match went on, playing on the front foot and pinning Gauff back with her aggressive and accurate groundstrokes.
However, her lack of court time also told with some loose shots letting Gauff off the hook at pivotal moments, including when the Briton missed those two set points by hitting a slightly-impatient backhand long and then a drop-shot into the net.
While any defeat hurts, Raducanu will undoubtedly look back on this performance with plenty of pride and positivity for the future.
Eyes were instantly drawn to this potential match-up when the draw for the first Grand Slam tournament of the 2023 season was made last week - and the contest between two of the sport's most exciting prospect did not disappoint.
True, lots of errors flowed from both racquets. But there was plenty of quality in an entertaining match which will have left many keen to see this develop into a long and enduring rivalry.
Gauff is the younger player with the greater experience, but Raducanu is the one who is already a major champion - a tag which Gauff is keen to add to her resume this season.
That is what made this match such an intriguing prospect.
Gauff warmed up for the Australian Open by winning a WTA event in Auckland and looked to be cruising towards victory when she was a set and a break up.
But doubts begin to creep into her game - particularly on her forehand side - as Raducanu rallied in the second set.
An old failing returned when a double fault provided three break chances for Raducanu at 4-3 and the American handed over the first one with an unconvincing forehand into the net.
However, Gauff showed her greater experience to regroup mentally and come through the tie-break.
Aiming for her first Grand Slam triumph, she will face fellow American Bernarda Pera in the third round on Friday.
BBC tennis correspondent Russell Fuller
Roll on episode two. There was more than a hint of the rivalry this may hopefully one day become, especially in a barnstorming climax to the match.
With Raducanu thumping the ball in all-out attack mode, Gauff's defence was phenomenal and it was this that turned the all important tie-break her way.
Raducanu says she was playing through a fair amount of pain, having pushed her body "over the limit" here in Melbourne.
Her plans for the next few weeks are yet to be decided, but the 20-year-old says she is in no rush to return to competition. Her instinct is that she first needs more time on the practice court.
Norrie's wild celebrations signalled his relief and delight at securing victory in a match which he thought he may not even get the chance to play on day three.
A backlog of matches after long rain delays meant play on the outside courts did not start until 17:00 local time (06:00 GMT) and Norrie did not take to the court until 22:15.
The match was played under floodlights in cold and windy conditions - described by Norrie as "nails" - and some rowdy fans were removed from the stands during an entertaining night's play.
Norrie was a break down in the third set as Lestienne tried to disrupt his rhythm with some unorthodox shots and colourful antics, but the Wimbledon semi-finalist fought back to win the tie-break.
Norrie broke for a 5-3 lead in a tight fourth set before serving out victory in three hours and 13 minutes.
It ensured he matched his best run at Melbourne Park, with his reward a third-round match against Czech youngster Jiri Lehecka.