Three-times Grand Slam champion Wawrinka soaked up warm applause after his 7-6(5) 2-6 6-4 6-4 defeat by American Taylor Fritz in the third round and celebrated by thanking fans before sharing a beer with tournament director Craig Tiley on court.
Wawrinka announced last year that 2026 would be his final season on the tour.
Djokovic later beat Dutchman Botic van de Zandschulp 6-3 6-4 7-6(4) to secure his 400th Grand Slam match win and fly the flag for the veterans, although he had no doubts about Wawrinka's legacy in the game.
"I'm proud to call him a friend and a rival and someone that definitely has inspired me. I mean, no doubt with his longevity, with commitment to the game. He's so passionate about it," Djokovic told reporters.
"Seeing him battle for over four hours in the second round, the way he turned it around, it's a testament to his career and what he brought to the court. His legacy will definitely live with many different younger generations that look up to him.
"He's a great champion on and off the court. A very likeable guy. He did everything the right way and deserved every applause he had this tournament. It's been a great farewell Australian Open for him with the crowd support."
Wawrinka, who made his Grand Slam breakthrough in 2014 by winning the Australian Open, is expected to keep going and play in the other majors this year before wrapping up his career.
"When he's gone, tennis is going to lose a great player and a great person," Djokovic said.
While Wawrinka's run ended, Djokovic lived to fight another day and the Serb was delighted to be in the fourth round where he faces Jakub Mensik, a player he has taken under his wing.
Not dropping a set in the tournament so far will give him the best chance to avenge his shock defeat by the Czech young gun in the Miami Open final last year.
"I try not thinking about managing the energy on the court in terms of being economic or saving something for later rounds, because it's just I don't feel that's the right mindset," the 38-year-old insisted.
"I think it's important to get the most out of yourself on the given day to win against the opponent on that day. I try to do it as efficiently as possible, and I've won nine out of nine sets so far, so I couldn't ask for more."
