Steve Smith hit his second century of his comeback Test on Sunday as Australia set England a daunting 398 to win the Ashes opener at Edgbaston.
Offspinner Nathan Lyon was often unplayable with 6-49 and passed 350 Test wickets in a remarkable turnaround for the Australians who had been reduced to 122-8 in their first innings at a hostile Edgbaston.
After heavy defeats in Brisbane and Adelaide, the visitors must win in Melbourne to keep the five-Test series alive, with Australia only needing a draw to retain the urn as holders.
After restricting England's second innings to 297, the Australians needed just 20 runs to clinch the match. They did it in 5.1 overs, for the loss of only makeshift opener Alex Carey (9), with Marcus Harris (9 not out) hitting a boundary to finish off.
It is an even harder task at the Adelaide Oval, where Australia's 315 for six to defeat England in 1902 remains the best fourth-innings run chase. England's problems stem from being bowled out, after a batting collapse, for 236 on Saturday in reply to Australia's 473 for nine declared.
The Pakistan-born Khawaja, playing his first Test since the 2019 Ashes series in England in place of COVID-isolated Travis Head, was at his unflappable best in notching an unbeaten hundred to put Australia in charge at 321 for six at tea.