Without key striker Erling Haaland, Pep Guardiola’s side faced an early exit, unable to challenge the dominant 15-time record winners in Madrid, with Nico Gonzalez’s stoppage-time goal being the only consolation for City.
Mbappe opened the scoring with a delicate lob in the fourth minute and added a clinical second after a brilliant team move that sliced through City’s defense.
The French star completed his treble in the second half with a low strike from the edge of the box, bringing his tally to seven goals in the competition this season.
City, who won the Champions League in 2023, were far below their usual standard, continuing a campaign that’s seen them struggle for consistency.
Guardiola’s pre-match troubles were compounded by Haaland being named on the bench due to a knock sustained against Newcastle over the weekend.
Meanwhile, Real Madrid were boosted by the return of Antonio Rudiger, who slotted in seamlessly at the back, and Aurelien Tchouameni, who was restored to midfield.
Madrid dominated the first half, taking the lead early. Mbappe shrugged off Ruben Dias to chip the ball over City goalkeeper Ederson after a long pass from Raul Asencio.
Minutes later, City suffered another blow when John Stones limped off.
Fede Valverde’s shot was deflected just wide, and Ederson made a save from Mbappe after a clever ball over the top from Tchouameni.
– ‘Fantastic four’ –
Mbappe netted his second goal in the 33rd minute after a brilliant combination from Madrid’s “fantastic four.” Jude Bellingham passed to Vinicius, who then rolled the ball across for Rodrygo.
Rodrygo nudged it to Mbappe, who cut inside, leaving Josko Gvardiol sliding in the wrong direction, before firing home at the near post.
Guardiola had claimed City only had a “one percent chance” of beating Madrid, and his team played as if they believed him.
Madrid’s only blemish came when Bellingham was booked for a foul on England teammate Phil Foden, which leaves him suspended for the first leg of the last 16.
Despite his recent red card for dissent in La Liga, Bellingham was assured in midfield, but the night belonged to Mbappe.
The 26-year-old completed his hat-trick just after the hour mark with a sensational individual goal, creating space at the edge of the box before firing past Ederson as City’s defense stood off.
Mbappe left the pitch to a standing ovation, and although Madrid continued to create chances without him, they couldn’t convert.
The home crowd marveled at their team’s ease of victory over an opponent with whom they’ve had many close encounters over the past decade.
In stoppage time, City pulled one back when Omar Marmoush’s free-kick struck the crossbar, and Nico Gonzalez tapped in the rebound, but it was little more than a consolation.
City have now lost 13 games in their last 26 across all competitions and face Premier League leaders Liverpool next Sunday, with a top-four finish still in play.
In contrast, Madrid remain in the hunt for three major trophies, and with Mbappe in such phenomenal form, they believe they can win them all.
Their next test in the last 16 will be against either city rivals Atletico or German champions Bayer Leverkusen.