Following a 2-1 first leg victory, Madrid appeared to have one foot in the quarter-finals as they headed back to Santiago Bernabeu for their second leg clash with the Dutch powerhouse.
Los Blancos had not been eliminated in Europe after winning the first leg away from home since a 1994-95 UEFA Cup defeat to Odense Boldklub as they entered Tuesday's clash as heavy favourites.
2 - Ajax are only the second team to eliminate Real Madrid from a European knockout tie having lost the first leg at home, after Odense Boldklub in the 1994-95 UEFA Cup. Shocker.— OptaJoe (@OptaJoe) March 5, 2019
However, it was Ajax who ran rampant from the offset, dominating the Spanish side en route to a 4-1 battering that sealed a 5-3 aggregate win for the Eredivisie side.
As a result, Real Madrid are the first reigning Champions League winners to fail to qualify for the quarter-final stage since Chelsea in 2012-13 as the Blues were eliminated in the first knockout stage that season.
The 4-1 scoreline was also the club's worst-ever margin of defeat in a home knockout game in European competition, with the capital club having now lost four consecutive home matches at the Bernabeu for the first time since 2004, having done so only three times ever.
Ajax are unbeaten in each of their previous 48 Champions League matches in which they’ve scored the opening goal, while they now progress to the quarter-finals for the first time in 22 years.
The last time the club won a knockout round tie was 1996-97 as they saw off Atletico Madrid in the quarter-final round that year.
Next up for Real Madrid is a trip to Real Valladolid as Santiago Solari's side plays for little more than pride over the remainder of the campaign.