The 17-year-old Spaniard produced a Hollywood strike against Zinedine Zidane’s men at the Coliseum in LA to underline his burgeoning potential.
That effort added to goals from Nicolas Otamendi, John Stones and Raheem Sterling as City stepped up their pre-season preparations in style against the European Champions.
Just as Phil Foden produced a performance to remember against United in Houston, Diaz put down a marker of his own in front of an all-time record football crowd of 93,098 in this stadium.
Diaz said: “It feels really good, but the performance of the team is the important thing.
“It’s a friendly but we always want to win against Madrid.
“To play for City now is a big thing for me. It’s a big team, I love City, the fans are amazing and the group and the facilities are amazing.”