As Roger Federer reached a landmark 300th Grand Slam win, Djokovic still looked like the man to beat as he weathered a strong challenge from Andreas Seppi to reach the first weekend without dropping a set.
The top seed and defending champion saved two third-set points against Seppi before reeling off the next four points to clinch it 6-1, 7-5, 7-6 (8/6), his 33rd straight victory over Italian opposition.
Federer earlier went through 6-4, 3-6, 6-1, 6-4 against Grigor "Baby Fed" Dimitrov, a man whose game is so similar to his own that he admitted it was like playing a mirror.
It wasn't all plain-sailing for Federer, but with the win he became the first man to reach 300 Grand Slam victories and lies six away from Martina Navratilova's record of 306.
"It's very exciting, I must tell you," said the Swiss, who also became the oldest man to reach the round of 16 since Andre Agassi in 2005.
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Sharapova left the court after she lost the second-set
tiebreak but after she came back refreshed and revitalised, she raced to victory to set up a clash with Switzerland's Belinda Bencic.
Williams had no such problems as she crushed overawed Russian teenager Daria Kasatkina 6-1, 6-1 in 44 minutes, the shortest match of the tournament so far.
"I definitely think I played better today. Everything I've been trying to work on was kind of clicking today," said the buoyant world number one, who is seeking a record- equalling 22nd Grand Slam title.
Belgium's David Goffin awaits Federer in round four, after he beat Dominic Thiem 6-1, 3-6, 7-6 (7/2), 7-5 in a match which included a generous act of sportsmanship from the Austrian.
Thiem, leading in the second set, told the umpire to give a point to Goffin rather than replay it after a Hawk-Eye challenge found a shot from the Belgian had landed in.
Elsewhere, fourth seed Agnieszka Radwanska reeled off nine straight games to floor Monica Puig 6-4, 6-0, despite continuing pain from a left-leg injury which stopped her competing in Sydney last week.
In other matches, Japan's Kei Nishikori beat Guillermo Garcia-Lopez 7-5, 2-6, 6-3, 6-4 and Jo-Wilfried Tsonga ousted fellow Frenchman Pierre-Hugues Herbert 6-4, 7-6 (9/7), 7-6 (7/4).
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