Match ends, Sassuolo 4, Milan 3.
Sassuolo striker Domenico Berardi scored four goals as AC Milan suffered an embarrassing defeat at the minnows in the first meeting between the clubs.
Robinho and Mario Balotelli netted as the 18-time Italian champions raced into a 2-0 lead after just 13 minutes.
Juventus loanee Berardi halved the lead instantly and completed his hat-trick before half-time to put Sassulo ahead.
He swept in again after the break and, after Riccardo Montolivo's late strike, the hosts held on.
An incredible game almost took another twist as Milan twice hit the woodwork in a tense finale, through Giampaolo Pazzini and debutant Keisuke Honda.
But 19-year-old Berardi's quadruple was enough to move Sassuolo, who are competing in the Italian top-flight for the first time this season, out of the relegation zone.
Defeat left struggling Milan in 11th place - just six points above the bottom three and 30 points behind leaders Juventus.
Milan looked to be easing to a second successive win as they took a 2-0 lead early on. First Robinho kept his calm to angle a ball into the bottom corner from Bryan Cristante's through ball before Balotelli converted from another Cristante pass.
Berardi pulled a goal back a minute later when he ran through to finish and he levelled just before the half hour mark with a crisp volley.
The striker, who signed for Juventus from Sassuolo in the summer before being loaned back, completed his second hat-trick of the season when he met Alessandro Longhi's cross on the half volley.
His fourth came after the break as he swept home from Jasmin Kurtic's pull-back and Montolivo's late angled drive was not enough to save Milan from a humiliating defeat.
While Sassuolo's official home has historically been the town's 4,008-capacity Stadio Enzo Ricci, this season has seen them ground-share with Reggiana at the Stadio Mapei, some 19 miles away because of league requirements.
- 79PegoloBooked at 79mins
- 23GazzolaBooked at 64mins
- 5AnteiBooked at 37mins
- 27KurticSubstituted forMarzoratiat 87'minutes
- 10ZazaBooked at 59minsSubstituted forFloro Floresat 84'minutes
- 25BerardiSubstituted forSchelottoat 78'minutes
- 86ZieglerBooked at 43mins
- 13Aladje Gomes De Pina
- 83Floro Flores
- 2De SciglioBooked at 89mins
- 34de Jong
- 25BoneraBooked at 29mins
- 23NocerinoSubstituted forPazziniat 55'minutes
- 24CristanteSubstituted forMontolivoat 55'minutes
- 45BalotelliBooked at 36mins
- 22Dos Santos Leite
- 7de SouzaSubstituted forHondaat 65'minutes
- 59Vasconcellos Ferreira
- Andrea De Marco
- Shots on Target
Second Half ends, Sassuolo 4, Milan 3.
Offside, Milan. Nigel de Jong tries a through ball, but Daniele Bonera is caught offside.
Attempt missed. Urby Emanuelson (Milan) left footed shot from outside the box misses to the right.
Foul by Urby Emanuelson (Milan).
Antonio Floro Flores (Sassuolo) wins a free kick in the attacking half.
Foul by Giampaolo Pazzini (Milan).
Lino Marzorati (Sassuolo) wins a free kick in the defensive half.
Mattia De Sciglio (Milan) is shown the yellow card for a bad foul.
Foul by Mattia De Sciglio (Milan).
Reto Ziegler (Sassuolo) wins a free kick in the defensive half.
Giampaolo Pazzini (Milan) hits the bar with a header from very close range.
Attempt saved. Mario Balotelli (Milan) header from the centre of the box is saved in the bottom left corner. Assisted by Riccardo Montolivo with a cross.
Substitution, Sassuolo. Lino Marzorati replaces Jasmin Kurtic.
Attempt missed. Giampaolo Pazzini (Milan) right footed shot from the centre of the box is too high. Assisted by Mattia De Sciglio with a cross.
Goal! Sassuolo 4, Milan 3. Riccardo Montolivo (Milan) right footed shot from outside the box to the bottom left corner. Assisted by Nigel de Jong.
Substitution, Sassuolo. Antonio Floro Flores replaces Simone Zaza.
Corner, Milan. Conceded by Marcello Gazzola.
Attempt saved. Giampaolo Pazzini (Milan) left footed shot from very close range is saved in the centre of the goal. Assisted by Kaká.
Keisuke Honda (Milan) hits the right post with a left footed shot from outside the box. Assisted by Riccardo Montolivo.