Chelsea's stuttering pre-season form continued into the second game under new boss Enzo Maresca, as Celtic ran the show at the Notre Dame Stadium.
There were two alterations to Maresca's starting line-up, as Wesley Fofana made his first start in more than a year in place of Tosin Adarabioyo and Mykhailo Mudryk replaced academy graduate Tyrique George.
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A fast start
The Blues had a promising start following their disappointing draw with Wrexham on Thursday, creating a chance within the first 30 seconds.
Spanish forward Marc Guiu inventively nutmegged his marker, before passing to Carney Chukwuemeka, who forced a save from Kasper Schmeichel.
A few minutes later, the Dane was called into action again as Christopher Nkunku flicked a ball towards the goal, which he kicked away. The ball then fell to Chukwuemeka once more, but captain Callum McGregor cleared the ball off the line.
Celtic gained momentum in the game after weathering the initial onslaught from the Premier League side. They took the lead when Matt O'Riley struck the ball into the bottom left-hand corner while the Blues defense remained stationary.
It didn't take long for the Bhoys to double their lead. Kyogo Furuhashi scored from close range, unmarked in the six-yard box after O'Riley's run down the right flank.
Chelsea created several opportunities through Noni Madueke and Chukwuemeka, who displayed signs of developing a partnership down the right flank.
The introduction of Raheem Sterling at halftime energized the Blues, with the winger hitting the post within five minutes of the restart.
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Quickfire double blow for Blues
Throughout the game, the Premier League side played a dangerous high line. Celtic exploited this and were rewarded when Luis Palma ran through and slotted past Sanchez with 15 minutes to go.
Three quickly became four as there was a clear lack of communication between Sanchez and Badiashile. The French center-half passed the ball straight to Michael Johnston, who slotted it home.
Chelsea managed to pull a goal back late on through Christopher Nkunku, who scored his second goal in successive games from the penalty spot after Colby Donovan tripped Sterling.
One positive for the West London side is the addition of Guiu. The young Spanish attacker, who was recently acquired from Barcelona, has settled in well. He relentlessly presses his opponents and appears to be able to accelerate very quickly, which is a useful skill to have at such a young age.
The forward has not had a clear chance in front of goal yet, but there are promising signs that he can be a valuable backup to Nicolas Jackson for the upcoming season.
Celtic will enter their first league match against Kilmarnock with high spirits.
Chelsea is traveling to Atlanta to face Club America next week, and there is a lot of work to be done.
Enzo Maresca believes that the performance was better despite the result, but work is to be done ahead of the league start in three weeks:
"We need many things to improve. One of the things we did bad today, when we are not pressuring we need to drop.
"We still confuse some things on and off the ball, but that is normal in this type of situation."
Chelsea: Sanchez (Bergstrom - 80), James (Gusto - 67), Fofana (Adarabioyo - 46), Badiashile, Colwill (Veiga - 80), Lavia (Andrey Santos - 67), Chukwuemeka (Ugochukwu - 46), Nkunku, Madueke (Angelo Santos - 79), Mudryk (Sterling - 46), Guiu (George - 84).
Unused subs: Beach, Chilwell, Acheampong, Broja.
Bookings: N/A
Celtic: Schmeichel, Ralston, Carter-Vickers (Walsh - 56), Scales, Taylor (Anderson - 67), O'Riley (Turley - 73), McGregor (Lawal - 73), Hatate (Holm - 73), Forrest (Hyun-Jun - 67), Maeda (Palma - 35), Furuhashi (Johnston - 73).
Unused subs: Bain, Kobayashi, Murray, Kwon, Dede.
Bookings: N/A
