Former champion Lyoto Machida (17-3 MMA, 9-3 UFC) was elusive early in the opening round and found success with his kicks and punches.
Jones appeared frustrated after Machida staggered him and landed a flush body kick.
Machida forced Jones to play his technical striking game for the first five minutes of the fight, but in Round 2 Jones kicked low and to the body.
Halfway through the second stanza Jones utilized his advantage in wrestling to take the fight to the mat, where a few early elbows left a nasty cut above Machida's right eye.
After both fighters traded punches, Jones locked on a standing guillotine choke and Machida's inability to escape the submission left him unconscious.
"It's not really a move I practice," Jones said post-fight. "I think it's just a move that comes natural from wrestling."
While Jones escaped a tough first round to prove that he can deal with adversity, it also showed that he's not untouchable.
Machida found success in the striking department and at one point had Jones frustrated, but the Brazilian jiu-jitsu master wasn't equipped to deal with Jones' unorthodox submission game.
Jones' next foe will be the winner of Rashad Evans and Phil Davis at next month's UFC on Fox 2 event on Jan. 21.
Evans and Jones are heated rivals, and if given the opportunity they will engage in what will likely be the most anticipated fight of 2012.
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