Two goals by Salomon Kalou, a Frank Lampard strike and an own goal sunk the hapless Spaniash side on an almost balmy evening at Stamford Bridge.
The early stages consisted of miss oppoprtunities for both side, with Kalou the obvious culprit.
The ivory Coast striker was in the side in the absence of suspended Didier Drogba and how the Chelsea fans must wish the talisman was on show.
Kalou seemed bereft of confidence but that was turned around with two smart strikes, which also swung the game the Londoners' way.
Lampard had not scored since the second game of the season, back ion August but got back on track with a trademark slash of the ball from the edge of the penalty area.
The ball was not hit as sweet as the midfielder would have liked, but it somehow evaded the Asenjo, Madrid's goalkeeper and nestl bued into the back of the net.
The crushed opposition still attempted to mount attacks and Petr Cech was called upon to make a coule of excellent saves.
But the game was put out of reach with an own goal, a header by Perea from Florent Malouda's free kick.