The top-seeded Djokovic, who was back in action this week for the first time since his shock second-round exit at the Australian Open in January, looked rusty in losing 7-6 (11/9), 7-5 in the quarter-finals of the hardcourt tournament.
The 21-year-old Kyrgios kept Djokovic off his game with an overpowering serve and precision groundstrokes as he blasted 25 aces and won 81 percent of his first-serve points in the one hour, 47 minute match.
Kyrgios will meet big-serving American Sam Querrey for a place in the final.
