Match summary
Rampant Hearts surged eight ahead of Celtic at the top of the Scottish top flight to strengthen their early title credentials and worsen the struggles around the Celtic team.
Alexandros Kyziridis' fine strike and Lawrence Shankland's penalty gave Derek McInnes' side a two-goal advantage that the reigning champions could not recover from.
Dane Murray - among three youth players in the Celtic starting lineup - scored an own goal in the early stages to put the home side ahead at a bouncing Tynecastle, and it was the youngster's infringement that led to the spot-kick.
A stylish finish from McGregor of the season had quickly cancelled out the first goal, and the Swedish attacker almost put Rodgers' team in front, opting for finesse over power and allowing Alexander Schwolow to make a crucial stop.
But the unstoppable Hearts side regained dominance to consign Celtic to successive league defeats for the first time since last year.
It also gives the Edinburgh side a significant lead at the top of the table.
The last time they were so far clear was in 2005-06 under George Burley, when they ultimately finished second - one of just four occasions that a team has failed to win the title after building such an advantage in the past 27 years.
McInnes, whose former team were runners-up to the champions on multiple times, has been working hard to downplay championship discussions, as Hearts seek their first top-flight crown since the 1960s.
Rodgers has experienced this previously at the club - both flawless and stuttering starts to a season. He's yet to finish second best.
But on Sunday's evidence, this Edinburgh outfit showed they deserve serious consideration.
Hearts started with the self-assurance of a side unbeaten in the league this season - the popular attacker delivered a ball for Shankland to stab wide.
Celtic didn't aid their cause with some unusual sloppiness in possession and they buckled under their initial test.
A headed effort from Braga was tipped onto the woodwork by Kasper Schmeichel and the follow-up from Shankland was diverted goalwards by the hapless defender, in for the absent center-back.
Celtic found their rhythm and started building moves. From one such move, the midfielder released the full-back to square for the captain, who rolled in.
Apart from the Nygren chance, Celtic struggled to create much for striker Kenny or his substitute Yamada amid the absence of stricken attackers Kelechi Iheanacho and Daizen Maeda.
Hearts regained their intensity and versatility in creating chances in the opposition half. The Greek forward, a standout performer of the club's scouting network, fired a low shot past Schmeichel from the just outside the area.
Immediately after, Murray fouled the midfielder in the right side of the box and Shankland converted. And it could've been an more comprehensive victory, had substitute Ageu not been stopped by Schmeichel.
The visitors' performance after the break was partially encapsulated in a couple of moments involving record signing Arne Engles.
The midfielder's wayward free-kick delivery was in sharp opposition to his European display in the Europa League win over Sturm Graz and the Belgium international was then booked for a professional foul.
Hearts head coach Derek McInnes: "The effort from the squad is evident, the team spirit. That's not sufficient on its own to win games consistently.
"Our strength lies in, is good technical ability. You're witnessing it from a lot of players who have been here before. Recent additions are eager to show that.
"We're in a positive moment at the minute, but it's just one win. It's important for us to keep winning. We've got loads to do, loads to do. After the first two rounds is typically a benchmark of where you are."
The Celtic boss: "The second goal was disappointing from our perspective. We failed to push up when the play was recycled as a line so when they pass the ball, they ought to be caught offside but didn't. We have got to do better with the attempt.
"There's still so many points to play for. It's only the beginning. It's just nine matches. Clearly, being eight points behind is not what we would want. The positive is there's numerous fixtures to play.
"Our attention must turn on the present and look to find more consistency and more quality in our play."
Celtic are back at home on Wednesday against promoted side Falkirk (19:45 GMT). At the identical hour in the Scottish Premiership, the Edinburgh outfit are at St Mirren.