Djokovic overcame a cut in his left hand that saw his racquet dripping with blood immediately after the crowd had been cleared from the stands in the fourth set due to 11pm night curfew in Paris.
The victory gave second seeded Nadal the 36th ATP Masters 1000 crown, equalling top seeded Djokovic's all-time record, since the series was established in 1990.
Djokovic fought back from breaks of his serve in each of the final two sets to reach his eighth consecutive semifinal at the Foro Italico where he has lifted the trophy five times, most recently last September
World number one Djokovic, playing in his first tournament since winning a ninth Australian Open in February, suffered his first defeat of 2021 on Thursday, DPA reported.
Dear fans, I'm very sorry to announce that this year I won't travel to Miami to compete. I decided to use this precious time at home to stay with my family. With all restrictions, I need to find balance in my time on tour and at home.
While Nadal and Federer holds the record for most Grand Slam titles in men's singles, Margaret holds the record for most titles in women's singles with 24
"I just came actually came from another MRI that I've done this morning and the damage is bigger than what it was when it happened when I did the first MRI after the third round," Djokovic told reporters.