Barcelona are all but out of the competition, having been humiliated 4-0 by Bayern Munich.
Real Madrid may believe they can recover against Dortmund next week, overturning this daunting deficit, but few would bet against Robert Lewandowski scoring in the Bernabeu.
The Pole who cost Dortmund only £4 million ($7.2 million) claimed the headlines for his four goals, but he was not alone in punishing the Spaniards.
Mario Gotze demonstrated why Bayern have paid a record fee for him. Marco Reus was another force, so was Ilkay Gundogan.
The pity is that Jurgen Klopp's superb side are being circled by wealthier clubs, looking to cherry-pick their best players.
Gotze is going. Lewandowski is being linked with a move to Bayern, possibly next year. Even Klopp himself is being coveted.
But whatever happens to the side, they will always have the memory of this night, when mighty Madrid came to town and were simply destroyed.
Dortmund pressed too quickly, counter-attacked too cleverly. Their players, assembled for far less than Real spent on Kaka, were hungrier, more intelligent.
Their fans were wonderful, full of relentless noise, the support coming from all over, barring the stunned Madrid section.
Maybe the Real followers had also heard the whispers linking Jose Mourinho with a move back to Chelsea.
Certainly he is in for a real inquisition after this capitulation.
Twenty-four hours earlier, Barcelona had been dissected and left devastated by the quality of Bayern Munich's football. Now, Borussia Dortmund were seizing an early lead with a fabulous goal. Real briefly fought back but Lewandowski was too good.
Gotze and Reus were like fireflies, buzzing forward. Gundogan distributed the ball around quickly, releasing attackers.
The script differed only briefly from the drama the night before. Where Barcelona were subjugated by Bayern from start to finish, Real rallied for a while.
At the final whistle, the Dortmund players did a lap of honour, saluting their terrific support, who can now surely make their plans for a visit to London. Lucky Wembley.
Bayern and Dortmund play swift, attractive, well-coached football with little simulation. It promises to be a memorable occasion.
'Stay cool' plea to grumpy fans
Borussia Dortmund have pleaded with supporters to "leave all the negative emotions at home" as they get ready for their Champions League semifinal first leg with Real Madrid against a backdrop of fury over the impending departure of star player Mario Gotze.
Dortmund coach Jurgen Klopp has implored fans to spare Gotze a hostile reception after it was revealed the playmaker will join bitter rivals Bayern Munich in a 32 million ($52.6 million) deal at the end of the season.
Gotze will become new Bayern coach Pep Guardiola's first signing and Dortmund are reeling at the timing of the announcement.
Police are understood to have attended the club training session this week as the levels of mutiny threatened to boil over.
Gotze will become the most expensive German signing in history, and the midfielder's official Facebook page has been besieged with aggressive messages from fans.
Gotze, 20, has emerged as one of Germany's most highly-regarded young talents since making his debut in November 2009.
Bayern are believed to have moved quickly to head off competition for him from Manchester City and Arsenal.
Dortmund's release clause of 37 million ($56.8 million) was met by Bayern this month and he will probably face his new team in the Champions League final at Wembley in May.
- Telegraph Group Ltd
