Leading 2-1 from the first leg, PSG replicated that result at Stamford Bridge to progress to the quarter-finals stages with a 4-2 aggregate victory.
Having trailed the match after just 16 minutes, Diego Costa’s equaliser seemed to put the hosts into the ascendency before injury deprived the Blues of the star man, who was replaced just after the hour mark.
Relying on youth from the bench, Hiddink’s side were unable to find the goal to take the match to extra-time before Zlatan Ibrahimovic struck the final blow to send them crashing out of Europe.
"We gave too much respect in the first 10 minutes, they were dominating,” Hiddink told BT Sport.
Chelsea vs PSG Player Ratings
“They are a good side but once we stepped up we had some chances. In the 67th minute it all changed. We had a good chance to score, then Diego Costa was injured. We knew he was not totally fit but he desperately wanted to play and scored a beautiful goal.
"You saw the difference between the squads when we had to bring young guys on and they have Edinson Cavani to come in. I must say that we had young Kenedy at left-back and he was excellent.
"It is a difficult season. We we’re almost panicking about relegation when I came in but it is difficult to get into fourth place."
Zlatan Ibrahimovic struck a decisive blow after Diego Costa departed with an injury.
2/15
Warm welcome
PSG fans get a hearty greeting to Stamford Bridge.
3/15
Boisterous blues
The travelling fans were in fine voice before kick-off.
4/15
Guess who's back, back again...
David Luiz struck at Stamford Bridge last time he visited his former club.
5/15
Wave your flag
More PSG joy from a confident fan.
6/15
Clash of the egos
Diego Costa and Zlatan Ibrahimovic meet before kick-off.
7/15
Angel of mercy
Angel Di Maria goes close with an early chance.
2016 Getty Images
8/15
Over and out?
Adrien Rabiot slides in to put PSG in a commanding position.
9/15
The 'fraud' strikes back.
Chelsea don't sit back after that early PSG goal as Diego Costa scores a superb leveller on the night.
10/15
Back in the game
Diego Costa celebrates as Chelsea look for that all-important second goal to level the aggregate score.
2016 Getty Images
11/15
It's a Trapp!
The ball nestles in Kevin Trapp's net.
2016 Getty Images
12/15
Blue flag flying
Costa's goal gave Chelsea real hope.
13/15
Battle at the Bridge
Angel Di Maria and Willian vie for possession.
14/15
Costa off
Unfortunately for Chelsea, Diego Costa succumbed to injury.
15/15
Too good
And that man Zlatan was on hand to make it 4-2 on aggregate.
2016 Getty Images
Guus Hiddink: Chelsea showed PSG ‘too much respect’ and their strength in depth made the differenceGalleryPublishedMedium width1Wednesday, March 9, 2016 - 22:15OnEnable video endboarddefault
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