Rangers, with manager Steven Gerrard and several players absent after a Covid outbreak, made it seven derbies in a row without losing.
The victory moves Rangers to within a point of Hibernian and Hearts at the summit. Celtic are now in sixth place after two defeats in four matches.
Ange Postecoglou has now become the first Celtic manager since Tony Mowbray in 2009 to lose his first Old Firm derby.
Watch the video below to see and hear some reaction from Rangers.
The Celtic view
Everyone associated with Celtic will obviously be disappointed with the result as their form had improved in recent weeks following an opening day defeat to Hearts. If they are to retain the title this season, they will need to win at least two of the remaining matches against Rangers. On this showing, and against a depleted Rangers side, that looks unlikely.
The video below explores some of the immediate reaction from a group of Celtic fans.
Previous matches and moments involving the two clubs
What's the social media reaction been like?
As you can imagine, social media in Glasgow and beyond has been dominated by the match. Leon Balogun spoke to RangersTV after his Man of the Match performance. The defender had only played in 19 games for his club last season but was superb today. This is what he had to say.
🎥 REACTION: Leon Balogun spoke to @RangersTV after a Man of the Match performance in today's victory against Celtic. pic.twitter.com/jxoh8qWCKi
— Rangers Football Club (@RangersFC) August 29, 2021
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