It was another snag in the return for the 30-year-old Djokovic who admitted he was out of sorts while playing in just his second event of 2018. "I mean, I just completely lost rhythm, everything".
Djokovic had four aces but overall he served poorly making four double faults and winning just 65 percent of his first-serve points.
Pablo Carreno Busta, the 11th seed, eventually overcame Daniil Medvedev on his fifth match point to secure a 6-1 7-5 win while world No 49 Borna Coric impressed with a 6-1 6-3 victory over 13th seed Roberto Bautista Agut.
Gael Monfils upset number 15 seed and 2012 runner-up John Isner 6-7 (5), 7-6 (3), 7-5.
There are few players who could have dealt with Federer in the kind of form he showed Monday.
"It's been a long time since I have been interrupted at night and have to come back the next day", Federer said.
Federer needed less than an hour to dispatch Filip Krajinovic in the previous round, mixing overpowering serves and pinpoint groundstrokes to advance to the fourth round of the tournament.
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More than 2,000 people will take part in the parade which will make its way through Dublin city centre on Saturday afternoon. Hamill, known for the role of Luke Skywalker , will be a special guest in the Presidential stand on March 17th.
The 36-year-old broke the 25th seed in his opening service game only to be broken back immediately, but from 2-2 won seven games on the bounce to take control of proceedings. "When you go away from the game for, let's say, over a two-month period maybe, it starts feeling a little bit that way". It is still early stages for Novak coming back and the first one after surgery.
"To me, it's not that surprising", Federer said.
The tournament also lost Japan's Kei Nishikori, who withdrew through illness.
While they were busy selling Lemonade, their dad made light work of Filip Krajinovic in the third-round at Indian Wells.
Daniel, speaking on the biggest win of his career, said, "It's kind of hard to describe.I can't believe I beat someone like that on the center court like this; it's insane". "And I think Novak needs that, too, even though I wouldn't be surprised if he would have won here or Miami or anything going forward, because he's too good of a player not to do something like that".
Djokovic took six months off after Wimbledon past year and returned in January's Australian Open where he lost in the fourth round.