Nigel Sears, 58, collapsed at Rod Laver Arena during Ivanovic's match with Madison Keys, and needed emergency treatment as the shocked players and thousands of fans looked on.
The match was halted for just under an hour as the British coach was stretchered away before Serbia's Ivanovic bravely resumed play -- only to lose 4-6, 6-4, 6-4 to a determined Keys.
As the drama unfolded, Murray was playing at the adjacent Margaret Court Arena, watched by his mother Judy. He did not give the usual on-court interview after his 6-2, 3-6, 6-2, 6-2 win over Joao Sousa.
However, a stadium announcer told the crowd at Rod Laver Arena that Sears was conscious and sitting up. "He's okay," he said, in an announcement that was greeted with applause.
Uncannily, it was the second Ivanovic match at Rod Laver Arena to be interrupted by a medical emergency after an elderly spectator fell on a stairway and also needed lengthy treatment on Thursday.
Murray has pledged to quit the tournament if his wife, who is due to give birth to their first child within weeks, goes into labour.
Two-time women's champion Victoria Azarenka raced into the last 16 for the loss of just five games in total, and also saw Garbine Muguruza cleared from her path as the third seed crashed to Barbora Strycova.
- Close to tears -
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Wawrinka, who won his first Grand Slam title in Melbourne two years ago, wielded his signature one-handed backhand to devastating effect against Lukas Rosol as he rolled the Czech 6-2, 6-3, 7-6 (7/3).
"Today's victory was for that community and a quick
recovery. All of Canada, and I'm sure the world, is behind you," said an emotional Raonic, who was close to tears as he addressed the crowd after his match.
Montenegro-born Raonic, who moved to Canada as a child, later explained that thoughts of the tragedy had given him enormous intensity as he played Troicki.
"But at the end of the day, to be in that situation -- there is five (four) people that will never go back to school again."
Towering American John Isner thundered 44 aces as he outlasted Feliciano Lopez 6-7 (8/10), 7-6 (7/5), 6-2, 6-4 to set up a last 16 clash with David Ferrer, who beat Steve Johnson 6-1, 6-4, 6-4.
Meanwhile Azarenka, back to her best after two years of injury trouble, blew away Japanese teenager Naomi Osaka 6-1, 6-1 as she accelerated into the second week.
Johanna Konta beat Denisa Allertova 6-2, 6-2 to become the first British woman to reach the fourth round in 29 years and set up a clash with Russia's Ekaterina Makarova, who ousted Czech player Karolina Pliskova.
