McGregor and Nurmagomedov finally got the chance to go at each other after months of build-up to this fight.
Millions of UFC fans watched on pay-per-view as Nurmagomedov claimed victory in the fourth round.
The Dagestan native forced McGregor into a submission after locking on with a rear naked choke.
Nurmagomedov then sparked controversy when jumping out of the Octagon and attacking one of McGregor’s entourage.
A mass brawl ensued, which has overshadowed the main event.
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UFC president Dana White said after the brawl: “This is a sporting event, if you think you’re going to start a fight once that’s over it becomes a criminal investigation.
“It’s bad for the brand, it’s bad for the sport, it’s bad for both fight camps.
“I don’t know how anyone can come out looking good from this.”
Asked what happens next for UFC, White said: “I’m so disappointed man. I’m one of the guys who has worked 18 years to get this sport where it is today.
“The thing was trending to be number one or two of all time on PPV and this is how it ends?”
All three judges in Las Vegas had Nurmagomedov ahead by two points heading into the fourth of five rounds.
MCGREGOR VS KHABIB SCORECARD
It is understood McGregor has declined to press charges against three people who were arrested for seemingly attacking him after the fight ended.