A goal in each half from Ivory Coast international Salomon Kalou, a fine drive from Frank Lampard and an own goal from Luis Perea kept undefeated Chelsea on top of Group D.
They now have nine points from three games and have yet to concede a goal in Europe this season.
Atletico started well and a lovely cross from Simao in the ninth minute was met by Diego Forlan at the near post but the former Manchester United striker's diving header was brilliantly saved by Petr Cech.
However, the breakthrough eventually arrived in the 41st minute thanks to a superb move. Lampard's pass to Ashley Cole was dummied brilliantly by Michael Ballack and when the England left-back delivered his cross into the six-yard box, Kalou pounced to fire into the roof of the net.
It could have been two straight after the restart but Asenjo punched away a shot from Nicolas Anelka and then did the same with a long throw from Belletti.
But Kalou supplied the second goal when he rose highest to head home a corner from Lampard.
Chelsea were now stretching Madrid's midfield considerably and a third goal cemented a fine performance in the 69th minute.
It was only Lampard's second competitive club goal of the season and his first from open play, but it was a typical 20-yard low drive from the England midfielder which beat Asenjo at his near post.
Chelsea finished off the night with a fourth when Perea headed Florent Malouda's free-kick into his own net.