The British No 3 had hoped to follow in the footsteps of the Three Lions but went crashing out to world No 123 Lulu Sun, 23, of New Zealand, 2-6, 7-5, 2-6 on Centre Court.
At one point, during the match Raducanu, 21, took a tumble after heavy rain made the ground slippery, leading to a medical time-out.
Following her knockout at the tournament, there are no British players left in the singles.
Dame Mary Berry, 89, and actress Salma Hayek, 57, were among the VIPs watching the action from the Royal Box yesterday.
Comedian Jason Manford, 43, author Richard Osman, 53, and his wife Ingrid Oliver, 47, and sports presenter Gabby Logan, 51, and her husband Kenny, 52, were also at SW19.
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