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22-year-old Garcia was taking a step up in class to fight Olympic champion Campbell, who had never been stopped in his career, for the WBC interim belt.
The British boxer landed a brilliant counter shot in the second round to put the American on the floor for the first time in his 21 fights.
However Garcia got up off the floor to dominate most of the rounds, though Campbell continued to box smart on the counter.
The youngster ended the fight in the seventh round with a picture perfect body shot that dropped 'Cool Hand Luke' to one knee and then the second knee and couldn't answer the referee's count.
Before the fight Garcia, who came with a huge reputation and massive following considering his age, was the clear favourite.
Campbell though had only been beaten three times previously, all going the distance, to Yvan Mendy, and he had since won a rematch, multi weight champion Jorge Linares and multi weight champion Vasyl Lomachenko.
It certainly came as a surprise to many when the London 2012 bantamweight gold medalist knocked down his younger opponent in the second round, with a very good left hand shot.
LUKE CAMPBELL PUTS RYAN GARCIA ON THE CANVAS IN ROUND 2 :boom: pic.twitter.com/hCQaPiVHjY- DAZN Boxing (@DAZNBoxing) January 2, 2021
However the American responded well and was the aggressor throughout the rest of the rounds, catching his opponent late in the fifth, which nearly caused a knockdown.
The 22-year-old continued his assault before finishing the fight in the seventh.
Teofimo Lopez's win over Lomachenko late last year has really thrown open the lightweight division, with Gervonta Davis also making a statement with his win over Leo Santa Cruz.
The win made Garcia the interim champ to Devon Haney's WBC version of the belt and the new number one contender called out both Haney and Davis after the win.
The lightweight division really is hotting up and Garcia could be its next king soon enough.
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