Blackburn suffered their second straight loss at the Sydney Festival of Football as AEK Athens emerged 2-1 victors.
The Greek side looked likely in the first half when Ignacio Scocco and Nikos Liberopoulos both scored in the space of three minutes.
Rovers, who also lost 2-1 to Rangers in their opening match of the tournament on Sunday, managed to grab a late goal courtesy of centre-back Phil Jones after the break.
But it was not enough as AEK ran riot, dominating proceedings to earn what was their second win in as many games.
The Greek club drew first blood after 21 minutes when Liberopoulos teed up Scocco, who saw off one defender to fire a low strike past Paul Robinson into the far corner.
The forwards then reversed roles three minutes later when Scocco fed Liberopoulos, enabling him to produce a fine finish on the half-volley to baffle Robinson once again.
A less charged second half saw Rovers pull one back as Jones delivered a rare shot on target eight minutes from the final whistle.
Substitute Morten Gamst Pedersen floated in a free-kick and Jones took advantage of some lazy AEK defending to nod the ball home.