Despite a brave performance, the Scot went down by three sets to one, and friends and family back home suffered the collective agony of the defeat.
A clearly emotional Murray was gracious in defeat, saying on court: "Firstly obviously, I'd like to congratulate Novak. His record here is incredible.
"I'd also like to thank my team. They've done a great job with me and they help me all the time.
"I'd also like to thank the whole crowd, there's such a great atmosphere to play in and you're all very fair, so thank you very much."
The bruising battle, which left Murray with huge blisters that required treatment during the match, was received in Dunblane with disappointment.
Eyes dropped to the floor as fans buried their heads in hands as the final shot was played.
Around 40 people had gathered at a bar in the Dunblane Hotel – many had been there from 8am, for what they hoped would be a historic win for the tennis ace.
One of those who had been cheering on Andy from early this morning was Jennifer Morris, 28, from Dunblane.
She said: "It was a bit disappointing, to be honest, compared with the game he played two days ago when it was amazing."
Murray's grandad Roy Erskine, from Dunblane, said: "There's always disappointment when you get a result in a big match like that."