The world champion won 10-7 after putting in a strong display, hitting eight 180s and averaging a score of 98.72 across three darts.
Victory puts Smith into a quarter-final tie against Dutchman Danny Noppert - who just edged Stephen Bunting 10-9 in a close fought encounter.
The big shock came when Gerwyn Price was eliminated from the competition after losing 10-8 to Dirk van Duijvenbode.
Price is a former world champion and currently fourth in the overall rankings but has crashed out of the Masters.
Van Duijvenbode will face Chris Dobey in the quarter-finals.
The other two ties in the final eight see Peter Wright face off against Jonny Clayton while Michael van Gerwen takes on Rob Cross.
Wright recorded a 10-7 win in the previous round against Dave Chisnall before Clayton breezed past James Wade with a 10-3 win.
Van Gerwen also won 10-7 after beating Jose Oliveira de Sousa - while Cross won 10-6 against Gary Anderson.
