McDonald broke Dimitrov's serve three times in the fourth set and pushed the fifth beyond 12 games, before his first double-fault of the set suddenly gave Dimitrov a match point. Dimitrov finished it off 4-6, 6-2, 6-4, 0-6, 8-6 to enter the 3rd round
Former Australian junior champion Marta Kostyuk, who entered the season-opening major ranked No. 521, followed up her opening win over 25th-seeded Peng Shuai with a 6-3, 7-5 victory over wild-card entry Olivia Rogowska.
Maria Sharapova said it was her choice to return, though, and she relished every moment of it in Tuesday's 6-1, 6-4 victory over Tatjana Maria.
No. 4-ranked Alexander Zverev said Djokovic did most of the talking at the meeting, which was attended by all of the top male players at the season's first major.
Djokovic tweaked his service motion while recovering from an injured right elbow, and used it to good effect in a 6-1, 6-2, 6-4 win over Donald Young.
Nadal also found his championship form again in a 6-1, 6-1, 6-1 rout of 37-year-old Victor Estrella Burgos in the first round at Melbourne Park.
Yuki Bhambri is yet to win a round in the main draw of a Grand Slam and the Australian Open is the only Major he has played.
Serena Williams' exit followed U.S. Open champion Sloane Stephens' 2-6, 7-6 (2), 6-2 loss to Zhang Shuai.
The 19-time major winner can afford to relax slightly longer, given the half of the draw that he shares with Djokovic doesn't start until day two of the Australian Open.
Bhambri overcame a first set lapse to tame Canadian Peter Polansky 1-6 6-3 6-3 in the third and final qualifying round.
Muguruza was forced to retire from two consecutive tournaments this month, first due to leg cramps at the Brisbane International and then at the Sydney International because of a thigh injury.
Despite a stellar 2017 season, which saw the 31-year-old claim the US Open and a record 10th French Open title, Nadal played down the significance of beginning the year with the No.1 ranking.
Kerber, the 2016 Australian Open champion, won four consecutive singles matches at the Hopman Cup, followed by five in Sydney International.
Simona Halep is looking to finally break through and win her first major after twice finishing runner-up.
Djokovic is seeded 14th and will be coming off just a couple of exhibition matches to prepare for his first-round encounter against Donald Young at Australian Open.
Let's have a quick look over male tennis icons, who are expected to shine at Melbourne Park
Federer beat Nadal in a five-set final for his 18th Grand Slam title — and his first since 2012 — and later won Wimbledon.
Angelique Kerber won all four singles at the Hopman Cup and now all four in Sydney en route to the final.
Del Potro's form in Auckland this week has been outstanding and he has shown no signs of a wrist injury which has dogged his career.
Kerber, who began last year at the top of the rankings before finishing at No. 22, won her seventh straight match of 2018, including four singles at the Hopman Cup last week.
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