Zverev is still waiting for his first grand slam title, having won the gold medal at the Tokyo 2020 Olympics last year.
With some huge portions at key moments, the Canadian looked impressive all around.
After taking a one-set lead, a key win at the early breaking point in the second set for Shapovalov caused Zverev to take his rage on his racket and knock it to the ground until it was completely ruined.
It was actually Zverev who served to win the second set with a 5-3 lead, but he produced two double errors that allowed Shapovalov to break back, before later saving the second set in a tiebreak.
An early break in the third set allowed Shapovalov to control the third set, and the first time he asked for it, he was able to claim the stunning win when Zverev could only hit a forehand into the net.
Under the hot Australian sun, 22-year-old Shapovalov took two hours and 21 minutes to complete the upset victory over Zverev.
“It’s always better to finish in three … this is probably the one I least expected to finish in three,” he added.
Shapovalov now faces Rafael Nadal in the quarterfinals after Spaniard defeated Adrian Mannarino in straight sets.
In his pursuit of a record-breaking 21 grand slam titles, Nadal had to endure a massive 28-minute tiebreak in the first set before beating Mannarino in the next two sets.
After his win over Zverev, Shapovalov paid his respects to the 35-year-old.
“It’s always fun, it’s always going to be a fight against him and yes, it’s going to be a tough one, I’m definitely going to enjoy it.”