Adrian Lewis threw a nine-dart finish against Raymond van Barneveld at the PDC World Championship but was knocked out after a 4-3 defeat by the Dutchman.
The third seed Lewis produced the first perfect leg of the event to win the opening set before Van Barneveld fought back to make the last eight.
Sixteen-time champion Phil Taylor is through but was pushed all the way in a 4-3 win over Belgium's Kim Huybrechts.
BDO world champion Stephen Bunting beat Michael Smith 4-2 to make the quarters.
Taylor will face Vincent van der Voort in the last eight on 2 January after the Dutchman beat Dean Winstanley 4-2 in his third-round match at the Alexandra Palace.
Scotland's Peter Wright and Gary Anderson will face each other after they both eased to victory in their last-16 ties.
Wright, beaten by Michael van Gerwen in last year's final, made light work of Andy Hamilton, with a 4-0 success, while Anderson came from behind to record a 4-1 win over Spanish qualifier Cristo Reyes.