The Queen of Pop invited PSY to be her special guest during her MDNA tour show at Madison Square Garden in New York, where she told her fans: "Because you've been working so hard on smashing your egos I have a little surprise for you.
"A song I haven't sung for a while. You're gonna have to help me out with everything. I'm tired, I've been doing this for a year!"
She then welcomed PSY to the stage where they performed a mash-up of her hit song Give It 2 Me, with the South Korean star's worldwide smash Gangnam Style.
Madge even took on PSY's iconic horse-riding dance, with PSY even crawling through her legs at one point, before joining the legend for a rendition of her track Music.
Before his performance with Madonna, PSY tweeted: "I think tonight I am going to go dance with a friend and make some history. you will see."
Their stint on stage together comes after Lady GaGa snubbed joining Madge one of her gigs, with the 54-year old telling fans at her show in Minnesota earlier this month: "I have the best fans in the whole world. So take that, Lady GaGa.
"You know, I invited her to sing with me on stage but she turned me down. It's OK. I've been rejected before. It's good to build character."
As well as teaming up with Madge, PSY hinted at a possible collaboration with Prince of Pop, Justin Bieber, telling Capital FM: "Yeah, so we have a plan to do something together later but we doesn't have any details yet. But, sure – we gonna do some work later on."