Michael Beale earned his first Old Firm victory at the fifth attempt as an intense and energetic Rangers overwhelmed Celtic to inflict just a second league defeat of the season on the Scottish Premiership champions.
Ange Postecoglou's back-to-back title winners bounced to Govan after sealing a successive crown at Tynecastle last weekend.
But they were met by a charged home side who ended Celtic's remarkable unbeaten streak of 34 domestic games and ensured they can no longer break the club's points record of 106.
The victory ends a six-game winless run in the fixture for Rangers, who opened the scoring after just five minutes when Todd Cantwell drilled in on the rebound.
Celtic almost responded instantly as Oh Hyeon-gyu dinked an attempt off Robby McCrorie's woodwork, but the visitors were well below-par and found themselves two down at the break when John Souttar headed in his first Rangers goal.
Beale's men maintained their level after the interval and scored a deserved third when Fashion Sakala capitalised on poor defending to round Joe Hart and ensure the insurmountable gap between the clubs is narrowed to 10 points.
The win is ultimately too little, too late for Beale this term, but it was imperative the Rangers manager and many of his players started next season knowing they are capable of getting the better of Postecoglou's Celtic.
After three straight derby defeats, including February's Viaplay Cup final and last month's Scottish Cup semi-final, the hosts started like a team with a point to prove.
And they made the perfect start when John Lundstram's strike from the edge of the box was palmed by Hart, with Cantwell - who was inspirational throughout - following up by lashing in first time.
Barring a brief spell in the first half during which Oh clipped the left-hand post and Abada had a close-range shot blocked, Rangers kept up their impressive energy levels throughout and had two-goal cushion when Souttar thundered in.
Cantwell was a constant threat to a Celtic defence that looked disjointed without Cameron Carter-Vickers, as the January signing from Norwich forced Hart into two fine stops at his front post after the interval.
But the former England keeper wasn't helped by a shaky backline, who were at fault again for the Rangers third.
Carl Starfelt essentially played through Sakala to skip by Hart and roll into an empty net - a goal which told the story of a day to forget for the newly-crowned champions.
Player of the match - Todd Cantwell
Despite playing just 17 times for Rangers this term, Cantwell has been one of the club's standout performers, which says as much about the Ibrox club's season as it does the midfielder's immediate impact. The 25-year-old will be an integral part of Beale's side going forward.Rangers fringe players stake claim - analysis
There is no downplaying the size of the rebuild Beale will have to oversee this summer. Saturday's result doesn't dilute that.
But the Ibrox manager will now know a lot more about his fringe players after again handing starts to McCrorie, Rabbi Matondo and Ridvan Yilmaz, while Souttar impressed after being brought in for the injured Ben Davies.
McCrorie, now 25, did his chances of becoming Rangers' long-term number one no harm. When called upon, the keeper made a fine stop to deny Matt O'Riley and showed authority by collecting high balls and coming off his line sharply.
Meanwhile, Matondo demonstrated good drive, pace and tireless running at the top end of the pitch, as did Yilmaz at left-back, but decision-making and quality on the ball left question marks at times.
If Beale learned a lot about his fringe players in victory, Postecoglou did too in defeat. There is a significant drop off in the Australian's defence without centre-back Carter-Vickers, plus full-backs Alistair Johnston and Greg Taylor.
The Celtic attack is also nowhere near as fluid without top scorer Kyogo Furuhashi, who started on the bench, while Daizen Maeda's relentless pressing was also lacking from the frontline.
But despite a rare off-day, the fact Postecoglou's side have now lost just twice in their last 67 league games only emphasises the remarkable consistency of the back-to-back Premiership winners.
What they said
Rangers manager Michael Beale: "It wasn't too dissimilar to the last two games, but we were more decisive in the boxes. The energy of the team is what I've been looking for. I haven't seen it enough.
"It's just three points, but it's optimism for the fans going into the summer. I'm delighted with our players. Over the season they've had hard days, so have the fans as well."
Celtic manager Ange Postecoglou: "It's a disappointing day and outcome, the performance wasn't great. We had our moments, but we didn't take our opportunities. If you take those chances, momentum shifts.
"Second half we lost our way a little bit. I don't set the standards, the football club does. You have to embrace that as a manager or a player or you won't succeed here."
What's next?
Both sides return to action next weekend as Celtic host St Mirren on Saturday (15:00 BST) before Rangers travel to Hibernian the following day (12:00).
Line-ups
Rangers
Formation 4-3-1-2
28McCrorie
2Tavernier6Goldson16Souttar3Yilmaz
4Lundstram43Raskin8Jack
13Cantwell
30Sakala17Matondo
28McCrorie2Tavernier6Goldson16Souttar3Yilmaz4LundstramBooked at 75minsSubstituted forKamaraat 88'minutes43Raskin8JackSubstituted forArfieldat 83'minutes13CantwellSubstituted forLowryat 88'minutes30SakalaSubstituted forLovelaceat 88'minutes17MatondoSubstituted forHagiat 69'minutesSubstitutes
1McGregor7Hagi18Kamara20Morelos37Arfield38King44Devine51Lowry72LovelaceCeltic
Formation 4-3-3
1Hart
56Ralston4Starfelt18Kobayashi25Bernabei
33O'Riley42McGregor41Hatate
11Abada19Oh17Neves Filipe
1Hart56Ralston4Starfelt18Kobayashi25Bernabei33O'RileySubstituted forHaksabanovicat 74'minutes42McGregorBooked at 60mins41HatateSubstituted forTurnbullat 74'minutes11AbadaSubstituted forMaedaat 63'minutes19OhSubstituted forFuruhashiat 63'minutes17Neves FilipeSubstituted forIwataat 74'minutesSubstitutes
3Taylor8Furuhashi9Haksabanovic14Turnbull24Iwata29Bain38Maeda49Forrest53SummersReferee:Steven McLeanAttendance:50,104Live Text
Match ends, Rangers 3, Celtic 0.
Second Half ends, Rangers 3, Celtic 0.
Daizen Maeda (Celtic) wins a free kick in the defensive half.
Foul by James Tavernier (Rangers).
Attempt saved. Ianis Hagi (Rangers) right footed shot from outside the box is saved in the top centre of the goal. Assisted by Glen Kamara.
Substitution, Rangers. Alex Lowry replaces Todd Cantwell.
Substitution, Rangers. Zak Lovelace replaces Fashion Sakala.
Substitution, Rangers. Glen Kamara replaces John Lundstram.
Attempt blocked. Fashion Sakala (Rangers) left footed shot from the right side of the box is blocked. Assisted by Connor Goldson.
Attempt missed. David Turnbull (Celtic) right footed shot from outside the box is high and wide to the right. Assisted by Sead Haksabanovic.
Substitution, Rangers. Scott Arfield replaces Ryan Jack.
Delay over. They are ready to continue.
Delay in match because of an injury Connor Goldson (Rangers).
John Lundstram (Rangers) is shown the yellow card for a bad foul.
Daizen Maeda (Celtic) wins a free kick on the left wing.
Foul by John Lundstram (Rangers).
Substitution, Celtic. Sead Haksabanovic replaces Matt O'Riley.
Substitution, Celtic. Tomoki Iwata replaces Jota.
Substitution, Celtic. David Turnbull replaces Reo Hatate.
Attempt missed. John Lundstram (Rangers) right footed shot from the right side of the box is close, but misses to the right. Assisted by James Tavernier.
Player of the match
CantwellTodd Cantwell
Rangers
Squad number13Player nameCantwell
Squad number28Player nameMcCrorie
Squad number43Player nameRaskin
Squad number16Player nameSouttar
Squad number30Player nameSakala
Squad number3Player nameYilmaz
Squad number2Player nameTavernier
Squad number4Player nameLundstram
Squad number6Player nameGoldson
Squad number8Player nameJack
Squad number7Player nameHagi
Squad number17Player nameMatondo
Squad number37Player nameArfield
Squad number72Player nameLovelace
Squad number51Player nameLowry
Squad number18Player nameKamara
Celtic
Squad number33Player nameO'Riley
Squad number4Player nameStarfelt
Squad number1Player nameHart
Squad number17Player nameJota
Squad number56Player nameRalston
Squad number41Player nameHatate
Squad number42Player nameMcGregor
Squad number18Player nameKobayashi
Squad number11Player nameAbada
Squad number19Player nameOh Hyeon-Gyu
Squad number25Player nameBernabei
Squad number8Player nameFuruhashi
Squad number38Player nameMaeda
Squad number9Player nameHaksabanovic
Squad number14Player nameTurnbull
Squad number24Player nameIwata