Attendance 59,341
Today's derby, Paul Le Guen's first as Rangers Manager, saw three changes in the visitors' line-up from Dunfermline with Julien Rodriguez, Barry Ferguson and Dado Prso replacing Libor Sionko, Gavin Rae and Nacho Novo. Remarkably there was only one Le Guen signing, Sasa Papac, in the starting line-up.
Home goalkeeper Artur Boruc ignited the atmosphere prior to kick-off when he broke away from Celtic's pre-match huddle to bless himself under his crossbar despite his recent brush with the legal authorities.
Miller should have had a dream start in just seven minutes when his pace took him clear on a Lee Naylor through-ball, only for his lob to be well over.
Eleven minutes later Charlie Adam's thirty-yard free-kick flashed inches wide. The free-kick had been awarded when Gary Caldwell pulled back Kris Boyd from a Prso head-flick as the Ranger homed in on goal. Incredibly Referee Dougie McDonald took no action apart from the award of a free-kick when he could easily have produced a red card.
Immediately thereafter at the other end Ferguson gave the ball away to Shunsuke Nakamura whose ferocious angled drive was beaten away by Allan McGregor.
McGregor again kept his goal intact in 23 minutes when he turned away Jan Vennegoor of Hesselink's 22-yard drive from Gravesen's pass.
Ten minutes later the dam was breached when Neil Lennon's cross found Aidan McGeady with a free header plumb in front of goal. McGregor produced a fine instinctive save only for Gravesen to nod home from point-blank range.
Neil Lennon let himself down yet again in 39 minutes when he provocatively gestured to the Rangers fans.
Celtic were well on top at this stage and McGeady almost made it two when he skimmed the crossbar from the edge of the box from a Nakamura pass in forty minutes.
Sixty seconds later Rangers had a strong penalty claim waved aside when Ferguson's cross saw Adam's header come off Caldwell's hand, but the referee waved play on.
The Ibrox men had much the better of play during the opening 25 minutes of the second-half, but a lack of a cutting-edge meant that the home goal was seldom threatened.
Libor Sionko replaced Alan Hutton on the hour, and Lee Martin substituted for the injured Burke four minutes later as Le Guen sought to change the shape of his team.
Dougie McDonald again failed to take any action when Gravesen committed a shocking over-the-top foul on Ferguson that left the Light Blue captain limping in 68 minutes.
Celtic produced a sucker punch five minutes later when in a counter-attack McGeady released Miller who slotted the ball home for his first goal for his new club.
Rangers were denied an almost instantaneous reply in 76 minutes when Prso's header from an Adam corner was cleared off the line by Naylor.
Four minutes later Boyd was denied his first ‘Old Firm' goal when he struck the crossbar with a turn and shot from Prso's cross.
Celtic substitute Maciej Zurawski was denied a third in 83 minutes when his low shot from a Vennegoor of Hesselink pass was held by McGregor at the second attempt.
The game was lost, and afterwards Le Guen reflected:
“I am disappointed to lose and at the way the first goal was conceded. We tried our best, our state of mind today was good. We can however do better – I am aware that I must find the solution, and that we must improve. Every game is now important. Several players are injured, including our best player Jeremy Clament.”
CELTIC Boruc; Telfer, McManus, Caldwell, Naylor; Nakamura (Sno 70), Lennon, Gravesen (Pearson 86), McGeady; Miller (Zurawski 77), Vennegoor of Hesselink
UNUSED SUBS Marshall, Maloney, Balde, O'Dea
RANGERS McGregor; Hutton (Sionko 61), Papac, Rodriguez (Rae 81), Smith; Burke (Martin 64), Ferguson, Hemdani, Adam; Prso, Boyd
UNUSED SUBS Robinson, Svensson, Sebo, Buffel
REFEREE Dougie McDonald