Chinese women's player Wang Xiyu unleashed formidable groundstrokes but fell agonizingly short of a second-round upset on Thursday, losing to eighth seed Emma Navarro in a three-set thriller at the Australian Open.

Wang led 4-2 in a gripping third set before the American showcased tenacity to prevail 6-3, 3-6, 6-4 in two hours and 11 minutes.

It was a see-saw match with both players returning superbly amid a mass of breaks, but 23-year-old Navarro finished strongly to underline her rising status.

Wang had 25 winners, but 39 unforced errors proved costly as she lost to Navarro in three sets for the second straight year in Melbourne.

Navarro will play former world No. 2 Ons Jabeur in the third round.

"I was able to find something at the end, it was really tough," Navarro said.

Having reached a career-high No. 49, Wang slid down the rankings in 2024 after falling in the first round at three of the four majors.

The left-handed Wang made an early season statement by dismantling Julia Grabher in the first round.

But she faced a much sterner test against Navarro, who had a semifinal run at last year's US Open highlighted by beating Coco Gauff.

Having survived a thrilling three-set opener against compatriot Peyton Stearns, Navarro started nervously on serve as Wang made an early statement with a forehand winner to break in the opening game.

But holding serve proved difficult with both players returning at a high level leading to relentless rallies on the baseline.

They swapped breaks across the opening four games before Navarro finally held after producing a brilliant forehand winner under pressure.

The American continued to find cracks in Wang's serve to wrap up the first set.

But Wang broke early in the second set and lifted her aggression to race to a 4-1 lead.

After some wobbles, having nervously dropped serve in the seventh game, Wang was not to be denied as she leveled the match after blasting a forehand winner.

Wang's momentum continued early in the third set with Navarro left rattled after dropping her serve with a double fault.

Wang hustled around the court with such determination that she took a hard tumble on the baseline in the fourth game.

The Chinese player rose to her feet after lying flat on her stomach for several moments, but her rhythm was broken and she dropped serve.

Wang regrouped and halted Navarro's fightback with a break in the fifth game, but unforced errors started to mount.

Her struggles on serve also reared as Wang exited the tournament in heartbreaking fashion.