Rangers inflicted Brendan Rodgers' first defeat in 13 Old Firm games after emerging 1-0 winners at Ibrox.
Rangers were well worth their victory, with Ryan Kent getting the only goal of the game in the first half.
Rangers and Celtic are now level at the top of the Scottish Premier League with 42 points, although Rodgers' side have played a game less than their city rivals.
Rodgers would have been upset with losing his unbeaten streak to Rangers, but he still made some classy comments after the game.
He told Sky Sports, per the Daily Record: "The better team won today.
"We had a lot of unforced mistakes and didn't create as much as we would like. So we have no excuse.
"But we had players missing and one or two who were not fit and that just took away that bit of strength from us."
Conversely, Steven Gerrard would have undoubtedly enjoyed his first win in an Old Firm derby.
Gerrard revealed after the game that he told his players to 'remember that level' in the dressing room after the victory.
He said, per the Metro: "I told them to remember the level. Remember the standard.
"Any team that comes up here, if we play to that level, they will be in for a tough game. That’s how it needs to be."
He's not wrong. Rangers were different class today.
Celtic simply were simply no match for them at Ibrox.
If Rangers are to replicate that level of performance for the rest of the season, they may well be celebrating their first Scottish Premier League title since the 2010/11 season.
Gerrard went on to admit that his side were 'superb' but there's still a long way to go in the season.
"This moment is all about the supporters," he added. "They’ve been through a lot. They’ve been punished in these fixtures recently so this is all about them.
"The players were outstanding across the pitch. We were better to a man. We could have made it more comfortable but it was a good result.
"We were superb. There’s still a lot of work to do. Celtic are a good team with a good manager. We can still improve and grow and we will."