The 19-year-old, who shot to fame with her spellbinding triumph at the US Open last year, slipped to a disappointing 6-3, 6-3 loss to France’s Caroline Garcia.
Carrying the hopes of the nation, the teenager struggled to cope with the power and accuracy of her opponent.
And she admitted losing yesterday was tough, but said ‘it’s okay because I didn’t have a lot of expectations of myself’.
She rejected suggestions that she was struggling under the weight of expectations to add to her US Open crown.
Tournament bosses were also dealing with growing anger from fans over the number of empty seats in prime spots on center court.
Strips of empty seats could be seen as Sir Andy Murray started his second round match – and the arena was not full at any point during Raducanu’s clash with Garcia.
This is believed to be due to hospitality guests, including members of the All England Lawn Tennis Club and Lawn Tennis Association, not taking their seats.
And there were also problems with the scanning of tickets, which meant that the seats were empty.
Day three of the tournament had started so positively for the British contingent at the tournament – with 10 through to the second round for the first time since 1984.
But Emma – Britain’s best hope for a Grand Slam champion – fell to defeat with the eyes of the nation on her and under the watchful eye of her mother Renee.
She said last night, “I’m 19. Yes I got attention. But I’m a slam champion and nobody can take that away from me.
“The pressure is on those who haven’t done it. There is no pressure. Why is there pressure? It’s literally a joke.
In a message to Remaining Britons, Emma said: “Everyone is doing really well and inspiring each other which is great for British tennis.”
Britain’s number one Cam Norrie survived a massive scare on Court One, beating Spaniard Jaume Munar in a five-set thriller.
The 26-year-old rallied after losing the second and third sets and took the win, dropping just two matches in the next two sets.
Harriet Dart also won her delayed first round match.
Underdog Ryan Peniston lost in straight sets less than 24 hours after picking up a decisive win on his Wimbledon debut.
Strictly Come Dancing winner Rose Ayling-Ellis, 27, swapped the dance floor for the hallowed Wimbledon grass as she took her seat in the royal box.
Carole and Michael Middleton were also spotted enjoying the sunny weather in SW19 with Carole in a floral dress and Michael in a beige suit.
Singer Sir Cliff Richard enjoyed SW19 tennis for a third straight day with a red rose pinned to his blue suit.
Another star in attendance last night was legendary TV presenter Sir Trevor McDonald.
But concern was growing again about the number of empty seats on center court for a top-flight match. Even the Royal Box was largely empty for parts of the first set.
TV presenter Sue Barker even revealed that there were “lots of empty seats” ahead of Emma’s match.
Killy Cavendish, 63, a veteran Wimbledon fan who lives locally and has been coming to the tournament for years, said: “I’m sick of it. I don’t like seeing empty seats at all, when people are stuck outside and queuing. The main thing I want to see is that they release center court tickets.
Paul Miller, 60, who sits in the LTA section as his company is the official gin partner, said: “Some of the guests, for example, maybe don’t want to watch so much tennis and that’s their prerogative.