Drew Mitchell scored four tries against the Lions as theWaratahs re-discovered their attacking flair and trounced the Lions by 73 points to 12.
Several records were broken in a match where Phil Waugh became the highest capped Waratahs player in history.
Drew Mitchell became the first Waratahs player to score four tries in the match and it was also the first time the Waratahs had scored eleven tries in a single match.
It took the Waratahs just 29 minutes to score their fourth and bonus point try - their first two came in under ten minutes.
Josh Holmes and Lachie Turner both scored two tries a piece.
The Lions conceded 72 points against the Chiefs in round 2 of the Super 14 and this result makes them the first team to break the 200 point mark of points scored against them (actual is 228) for an average of 45.6 points conceded per match.
The Waratahs, who led 33-5 with a bonus point at halftime, improved their record this season to 3 wins and two losses 2 while the South African side lost their fifth match in a row.
Phil Waugh played his record 119th match for the Waratahs, 41 of them as captain. He broke the previous team mark of 118 by former captain Chris Whitaker.
Berrick Barnes converted nine of the Waratahs tries while Tonderai Chavhanga and Janse van Rensburg scored the Lions five-pointers.
The Lions are among only three teams this season without a win.
The South Africa-based Sharks will try to win their first in five when they play the Brumbies on Saturday, while the Western Force, the only team without a competition point, plays the Reds on Sunday.
"We really tried to take advantage of our opportunities, and it paid off," Mitchell said.
Waugh said the win was an important one for the Waratahs.
"We converted pressure into points, so we're pleased with the result," Waugh said.
The Waratahs who scored five tries by halftime, showed a willingness to attack from deep and take quick taps and kick for touch rather than take penalty shots for goal.
Mitchell beat three defenders near the end of the first half for his second try, then added two more in the second half.