Pep Guardiola’s men lost in the group stage for the first time in three years after goals from Idrissa Gueye and Lionel Messi ensured the hosts took three points from a tight contest.
Gueye opened the scoring in the eighth minute, lashing into the top corner from 10-yards after a loose ball dropped into his path following good work down the right-hand side from Messi, Achraf Hakimi and Kylian Mbappe.
City regrouped, controlling possession and creating chances, as they did throughout and might have found an equaliser only to be denied by the woodwork two times in as many seconds.
City remained on the front foot, but PSG always carried a threat on the break and it proved City’s undoing as a moment of magic from Messi doubled the hosts lead.
Driving inside off the right flank, the Argentine exchanged passes with Mbappe before curling a sumptuous effort into the top corner from 18-yards.
PSG 2-0 City: Highlights
PSG 2-0 City: Match report