It was a theatrical display from the eccentric 24-year-old, who played shots through his legs, served underarm, joked with fans and slumped on the net.

Kyrgios, the world number 43, eventually won 7-6 (7-4) 3-6 7-6 (12-10) 0-6 6-1 in three hours 26 minutes.

Third seed Nadal saw off Japan's Yuichi Sugita in straight sets.

There was controversy surrounding another Australian player at Wimbledon on Tuesday as Bernard Tomic was dumped out in straight sets by Jo-Wilfried Tsonga in under an hour.

The 34-year-old Frenchman, a two-time Wimbledon semi-finalist, served 21 aces on his way to winning 6-2 6-1 6-4 in 58 minutes - the shortest men's singles match at Wimbledon since 2004.

Two years ago Tomic was fined more than £11,000 and dropped by his racquet sponsor after saying he felt bored and called the trainer when he was not injured during a first-round loss to Mischa Zverev.

He declined to answer several questions about his effort levels this time, putting his head in his hands at one point, and when asked if he might be fined again responded with "for what?".

"I think I played as best as I could. It's just I played terrible," added the 26-year-old, who could lose some of his £45,000 prize money if it is perceived he showed a lack of effort during the match.

'Rafa and I won't be having a beer together'

Kyrgios and Thompson have known each other since the age of eight, but the latter looked increasingly frustrated by his compatriot's unpredictable antics.

Kyrgios lay on the grass after an exchange in the first set, received a code violation for whacking a ball out of court and entertained with his range of shot selections on court three.

At set point in the third, with the match poised at one set each, he chose to serve underarm and was then taken to a tie-break, which lasted 19 minutes before he eventually won it on his eighth set point.

But Kyrgios gave up the fourth set in just 18 minutes, losing a set to love for the first time at a Grand Slam as he won just five points throughout.

The former world number 13, who shocked Nadal on his way to reaching the quarter-finals at Wimbledon in 2014, then upped his game to twice break Thompson in the decider and reach the second round at a major for the first time this year.

Nadal lost to Kyrgios four months ago in Acapulco, with the Spaniard accusing him of "lacking respect" while Kyrgios described the world number two as "salty".

"(I'm) not sure that me and Rafa could go down to the Dog and Fox and have a beer together," said Kyrgios.

"I don't know him at all. I know him as a tennis player. We have a mutual respect, but that's about it I think."

The Australian added: "As soon as the draw came out, I was super happy that I saw him in my section. I mean, it's more exciting.

"When you're a kid, you want to play the best players in the world on... the best court in the world. This is something that I can't take for granted."

Kyrgios also says he enjoys entertaining and interacting with the crowd during matches.

"I just go out there, have fun, play the game how I want it to be played," he said.

"The sport has a serious problem with that. Just because I'm different, I go about it a different way, it causes a stir.

"If everyone was the same, it would be very boring, no? I mean, I don't think there's a shortage of entertainers. I just think people go about it differently."