Nicknamed the Hoops, Celtic drew first blood early, with Japanese midfielder Reo Hatate scoring the opener in the fifth minute at Celtic Park in Glasgow.
Hatate doubled the gap for Celtic in the 42nd minute, curling the ball into the bottom corner of the net.
Two minutes later, Celtic's Israeli winger Liel Abada made a close range finish after a cross from the left as the home team extended their lead.
Thanks to the first-half goals, Celtic won the derby 3-0.
The Hoops are in a fierce battle against Rangers in the league as both clubs are currently the title contenders.
Celtic boosted their points to 57 to top the Scottish Premiership standings.
Meanwhile, Rangers moved down to second position with 56 points in 24 league matches.
Celtic versus Rangers clashes -- largely known as the Old Firm Derby -- were regarded as one of the fiery and oldest derbies on the globe. The Glasgow clubs first met in 1888.
