Raducanu and Alcaraz were given a wildcard for a shot at the winning prize of $1m (£740,000).
Emma Raducanu and Carlos Alcaraz might have lost in the revamped US Open mixed doubles - but they certainly won the hearts of the New York crowd.
In a party-like atmosphere at Arthur Ashe Stadium, Britains Raducanu and Spains Alcaraz saw their chances of claiming a $1m winning prize ended by fellow Briton Jack Draper and Jessica Pegula.
Despite the presence of home player Pegula, it was the losing pair who were heavily backed by a sizeable crowd at Flushing Meadows.
Pegula and Draper won 4-2 4-2 in the new shortened format, which is part of the US Opens "reimagination" of the mixed doubles.
As well as the huge financial incentives, the event has also been moved forward to the week before the singles main draws to attract the stars.
Raducanu and Alcaraz teaming up for the glamorous event - which has controversially deviated from its traditional format and polarised opinion - and created many of the pre-tournament headlines.
There was a fear they might not turn out at all, given Alcaraz played in the final of an ATP event in Cincinnati on Monday.
But the pair walked out together on the US Opens main show court little over 24 hours later to a euphoric reception of screams and shouts.
Pegula, who has been ranked world number one in the womens doubles, and Draper were also a scratch pairing but had too much quality against a pair who are less experienced in tour-level doubles.
For Draper, it was third time lucky - having seen previous planned partners Zheng Qinwen and Paula Badosa withdraw through injury.
Pegula and Draper will play either Serbias Olga Danilovic and Novak Djokovic or Russias Mirra Andreeva and Daniil Medvedev in the last eight.