Karim Benzema struck twice in the last five minutes to knock Rangers out of the Champions League and help Lyon into the second round along with group winners Barcelona.
Striker Sidney Govou had put the visitors ahead in the 16th minute when he pounced on the rebound after Rangers goalkeeper Allan McGregor parried a Benzema cross.
The home side needed only a draw to qualify but squandered their chances and Benzema made them pay with a goal in the 85th and then three minutes later.
Rangers were reduced to 10 men at the end when Jean Claude Darcheville was shown a straight red, minutes after hitting the crossbar from two yards out with the score at 1-0.
Lyon finished runners-up in the group to Barcelona, who had already qualified for the last 16 before beating VfB Stuttgart 3-1, thanks to goals from Geovanni Dos Santos, Samuel Eto'o and Ronaldinho.
Antonio Da Silva gave Stuttgart a shock early lead from a free kick after four minutes.
Sevilla claimed top spot in Group H following their 3-0 victory over Slavia Prague to render Arsenal's efforts against Steaua Bucharest redundant.
Sevilla took the lead after 67 minutes through Luis Fabiano before former Tottenham striker Freddie Kanoute put the Spanish team further ahead two minutes later and Daniel Alves scored a third.
Abou Diaby gave Arsenal the lead at the Emirates Stadium as he took advantage of some Steaua hesitancy as Arsenal won 2-1.
Nicklas Bendtner extended the lead three minutes before half-time but the visitors pulled one back through Dorel Zaharia's header.
Fenerbahce qualified for the knockout stages for the first time in their history after they claimed a 3-1 win over CSKA Moscow in their Group G clash in Istanbul.
The hosts went behind after 31 minutes when Dracena put through his own goal but the Turkish side were level a minute later through Alex's long-range strike.
Ugur Boral then put Fenerbache ahead on the stroke of half-time and the same player sealed the win on full-time.
PSV's hopes of leapfrogging Fenerbahce were hampered when Edison Mendez was sent off midway through the first half against Inter Milan for a professional foul on David Suazo.
The Italians then scored the only goal after 64 minutes through Julio Cruz's close-range shot.
Roma hit back to claim a 1-1 draw against Manchester United in Group F in the Stadio Olimpico to deny the visitors in their bid to become only the fifth team to complete a 100 per cent record in the group phase.
Gerard Pique put Manchester United ahead with a header from a corner in the 35th minute but Alessandro Mancini drew the Italians level 20 minutes from time with a long-range curling shot.
Sporting Lisbon claimed a 3-0 win over Dinamo Kiev who finished the campaign with no points.
Polga ( penalty), Moutinho and Da Silva Liedson scored the goals.
