Bernardo Silva’s first-half double had us in command at the interval at a rocking Etihad Stadium.
Further goals from Manuel Akanji and Julian Alvarez in the second period secured a commanding 5-1 aggregate victory over the Spanish giants.
Grealish put on a sparkling display and has now created 35 chances in this season’s Champions League campaign - the most on record by an English player in a single season.
The win also means that we are now unbeaten in 26 home Champions League games.
Grealish was delighted with the win. He said: “Unbelievable. Just to be in this moment, it’s so nice. I don’t think a lot of teams will do that to Real Madrid.
“But I swear, when we’re all together and playing, especially here, we feel unstoppable. I saw a stat the other day about our Champions League games and I couldn’t believe it, the amount we’ve won home compared to away, every game at home we win.
“When we play here, we just feel unstoppable. Even in the league, we feel like nobody can beat us. Tonight here, it’s unbelievable.
“I’m playing well and feeling confident, but I still feel I can get more goals and assists. It’s not all about that though because I bring more than that. For me it’s a dream come true. I’m buzzing.”
The victory sets up a final showdown with Italian giants Inter, with the game scheduled for June 10 in Istanbul.
Grealish, who has watched the Serie A side in action this season, has full faith in manager Pep Guardiola to prepare the team in the best possible manner to overcome the tough challenge.
“Every game we play we try to dominate the ball,” he said. “The manager in there is a genius; he’ll tell us bits where we can hurt them.
“They have a lot of experience. I watched them last night. You have to be a good team to get to the final so you have to give them respect.”
