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Celtic beat Rangers 3-0 in the first Old Firm game at Celtic Park in front of a crowd for two years
Ange Postecoglou hailed a 3-0 win over Rangers to go top of the Scottish Premiership for the first time since August as a sign of the progress the Hoops have made in his first season in charge.
Postecoglou lost three of his first six league matches, but Celtic are unbeaten in 18 since.
Reo Hatate was the star of the show on his Old Firm debut as the Japanese midfielder scored twice and made the other goal for Liel Abada.
Victory takes Celtic one point clear of their Glasgow rivals at the top of the table.
Postecoglou's men have overturned a six-point deficit at the winter break in the last four games and will now be confident of taking back the title with a number of key players to return from injury and international duty.
"Going top is a sign of the progression. We lost three of our first six games and everyone knows how the Scottish Premiership works, we have had to be nearly perfect since," said Postecoglou.
"It was a big game, we knew the consequences. There was big pressure on us and they handled it."
Rangers had been unbeaten in the previous seven meetings between the teams but were blown away in Giovanni van Bronckhorst's first Old Firm game in charge.
"It seemed like it was the first Old Firm we've played," said Van Bronckhorst, who has plenty of experience of the Glasgow derby from his time as a Rangers player.
"We know what it will bring. The environment, the ambiance, the pressure, but it seemed like we weren't ready for it.
"When the whistle blew we were just waiting for the goal to be scored. We were too naive and deserved to be 3-0 down."
Rangers stopped Celtic's bid for a record 10th consecutive title last year by romping clear to win the league by 25 points.
But Celtic have been transformed by Postecoglou's arrival from coaching in the J-League and a number of Japanese players who followed him to Glasgow.
Hatate already looks a bargain having cost just over £1 million ($1.3 million), and got Celtic off to the perfect start by firing through a crowd of players into the far corner after just five minutes.
Rangers goalkeeper Allan McGregor was at fault for two goals in a 3-3 draw at Ross County at the weekend that allowed Celtic to close within striking distance at the top of the table.
However, the 40-year-old justified Van Bronckhorst's faith by producing a hat-trick of saves to prevent Giorgos Giakoumakis doubling the home side's lead.
Rangers had looked to have weathered the Celtic storm as half-time approached and could even have levelled when Joe Hart spread himself well to save a one-on-one with Scott Arfield.
But they were hit by a quick-fire double just before the break which sparked jubilant scenes of celebration in the first clash between the sides in front of a full crowd at Celtic Park for over two years.
Firstly, Hatate produced another wonderful finish by curling beyond the grasp of McGregor from outside the box.
With Rangers still reeling, Hatate turned provider as his cross was pounced on by Abada for his 13th goal of the season with a classy first-touch finish.
Van Bronckhorst showed his fury by making three half-time substitutions and they made a difference in a far better second-half showing from the visitors.
But it was too little, too late for the Scottish champions as they succumbed to just a second defeat in 63 league games.
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