Rafael Nadal sent out a statement by crushing Australian hope Alex De Minaur 6-1 6-2 6-4.
Nineteen-year-old De Minaur won the warm-up tournament in Sydney and had been touted as the home country's best hope for success in the men's draw but the scoreline was exactly the same as in their meeting at Wimbledon last summer.
De Minaur showed great fighting spirit to make a game of it in the third set and saved five match points yet Nadal was simply too strong and moved through to an intriguing clash with Berdych.
Roger Federer put on a performance on Rod Laver Arena to defeat Taylor Fritz and set up a mouth-watering fourth-round clash with Stefanos Tsitsipas.
Federer was pushed in the second set by 21-year-old American Fritz but pulled off a succession of highlight reel shots in a 6-2 7-5 6-2 victory, hitting 34 winners.
The Swiss will play in the fourth round of a grand slam for the 63rd time against a man through to that stage for just the second time in 20-year-old Tsitsipas.
The Greek is arguably the most exciting young star in tennis and he battled to a 6-3 3-6 7-6 (7) 6-4 victory over Nikoloz Basilashvili.
Tsitsipas however had to apologise afterwards for an expletive-laden rant after the umpire decided to replay a set point for Tsitsipas with Basilashvili at 5-3 in the third set.
Pressed on his language afterwards, Tsitsipas said: "It was heat of the moment. I said some really bad things. I regret saying them. But I really wanted this really bad.
"At that moment it felt like it was slipping (away). He kind of found comfort and confidence after that. So I was really frustrated. I didn't quite think what I was saying. I wish I could change that and wouldn't say that. It's not the right attitude."
A resurgent Tomas Berdych is also through to the last 16 for the eighth time in the last nine years here after a 5-7 6-3 7-5 6-4 victory over 18th seed Diego Schwartzman. Next up for him is a clash with Rafael Nadal.
Nadal sent out a statement by crushing Australian hope Alex De Minaur 6-1 6-2 6-4.
Nineteen-year-old De Minaur won the warm-up tournament in Sydney and had been touted as the home country's best hope for success in the men's draw but the scoreline was exactly the same as in their meeting at Wimbledon last summer.
De Minaur showed great fighting spirit to make a game of it in the third set and saved five match points yet Nadal was simply too strong in the end.
Milos Raonic backed up his first-round victory over Nick Kyrgios by defeating former champion Stan Wawrinka 6-7 (4) 7-6 (6) 7-6 (11) 7-6 (5).
The 16th-seeded Canadian certainly did not have the luck of the draw but the manner in which he has dispatched two highly dangerous opponents suggests he could be a real threat this fortnight.
Raonic has struggled with injuries since his brilliant season in 2016, when he reached the semi-finals in Melbourne, the final of Wimbledon and was ranked third in the world.
Kei Nishikori fought off the challenge from evergreen Ivo Karlovic to reach the third round of the Australian Open.
Giant Croatian Karlovic turns 40 next month and his first-round victory over Hubert Hurkacz made him the oldest man to win a main draw singles match here since Ken Rosewall in 1978.
He threatened to back it up with an upset of eighth seed Nishikori, coming back from two sets down to force a deciding set, which went all the way to a first-to-10-points tie-break.
Karlovic was a mini-break up at 7-6 but Nishikori won successive points against the serve to triumph 6-3 7-6 (6) 5-7 5-7 7-6 (7) despite his opponent sending down 59 aces.