Diaz (16-7) has now won three straight since moving back down to the lightweight division. The Stockton bad boy taunted Miller during the second round, toying with him to try and knock him out.
"I'm feeling good," said Diaz, who declined to touch gloves with Miller before the fight, but showed him plenty of respect after. "I had nothing bad to say (about Miller), I was just motivated to fight."
Instead, Diaz worked the fight to the ground, locked in a choke and didn't allow Miller to roll out of it. The loss by Miller was the first submission defeat in his career.
"It was pretty tight," said Diaz, of the choke. He improves to 11-5 in his UFC career.
Miller (21-4) has now lost two of his last three, dropping his record to 8-2 in his past 10 fights.
"Knew coming in he is one of the best and he deserves that shot (at the UFC lightweight title)," Miller said.
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