The five-time Aussie Open finalist lost 6-4, 6-4, 6-7 (5-7), 6-7 (4-7), 6-2 in a five-set, four-hour marathon, just days after announcing that this season would be his last, citing a right hip injury that has kept him out of action recently.
Murray, 31, dropped the first two sets, then came back to win the third and fourth sets in tiebreakers. Murray struggled all match with what was obvious pain in his hip, but battled through winning brilliant points, but also suffered costly unenforced errors.
After the match, Murray didn't specifically address his retirement in an interview on the court after the match but was shown a video tribute from the sport's biggest stars, including long time rivals Roger Federer, Rafael Nadal and Novak Djokovic.
"I've honestly loved playing here over the years. It's an amazing place to play tennis. If this was my last match, (it's an) amazing way to end," Murray said. "I gave literally everything I had. It wasn't enough tonight."