Australia's Travis Smyth has enjoyed a memorable finale to his debut British Open, celebrating a spectacular hole-in-one at the 17th at Royal Liverpool.

The 28-year-old from Shellharbour, NSW, was on his way to missing the cut with two holes to play when he went out in a blaze of glory, striking the tournament's first ace in Friday's second round.

On the controversial new 132-yard par-three 17th, designed to create more late drama in the Open at Hoylake, Smyth's tee shot with a nine-iron took two bounces on the green and rolled into the hole, much to his astonishment and delight.

"It was amazing. A bit bittersweet actually. I had a shocker the day before on the same hole, made a double bogey," said Smyth, a professional who makes his crust on the Asian Tour.

"I was just really happy I hit a good shot because I was so disappointed from Thursday.

"Huge surprise that it went in the hole.

"It was just the perfect distance, perfect wind and the club. Everything just came together — and it was a moment I'll never forget.

"It was a chippy 9-iron, and probably half-way through the flight I was, 'All right, this is going to be good'. It looked amazing."

It was the third ace of Smyth's career.

"Both the other two were — I wouldn't say poor shots, but I wasn't aiming at the flag," he said.

"I kind of pushed one in the hole and then I pulled another, but today was my first hole-in-one (when) I've actually attempted to get close.

"It was great. It was awesome. Even walking back to the 18th tee and down the last, people were yelling my name."

There to congratulate him at the end of his round was his friend and former LIV Tour colleague, Open champion Cameron Smith, who embraced him with the salutation: "Good work mate".

Smyth was the first to completely master the 17th hole which has created such hot debate at Hoylake this week, with its sloping turtle-shell green surrounded by the most punitive pot bunkers.

"It's crazy. For sure, a little bit of history to be the first to hole-in-one there, super cool," he said.

Smyth, who spends his time between Sydney and Chicago, had a previous claim to fame by winning $1 million in one lucrative week when he got the chance to qualify for the original LIV event at Centurion near London.

Asked what was better, winning a million or firing a British Open ace, Smyth smiled: "That's a tough one. Probably a million dollars."

Alas for Smyth, the ace couldn't stop him bowing out of the Open with a second-round 72, leaving him eight-over for the tournament.

"Didn't play well, and that has chewed me up a lot," he said.

"So the ace is as good as you can feel when not making the cut, let's put it that way. It was a fantastic way to bow out."

Smith stays alive, but Day and Lee lead the way

British Open champion Cameron Smith showed a champion's heart and brilliance to stay in the 151st edition — but it's Jason Day and Min Woo Lee who are charged with ensuring the Claret Jug comes back to Australia.

Smith was in grave danger of his reign being ended at Royal Liverpool on Friday night when, at four over par with the cut line at three over, he delivered a truly magnificent six-iron approach from 232 yards to within 16 inches of the pin at the par-five final hole, ensuring a tap-in eagle.

It keeps him in the action for the weekend and, while the champion accepts it's now a "big ask" for him to retain his crown, he hasn't yet conceded his title.

But, in truth, Aussie hopes now rest firmly with former PGA champ Day and rising star Lee, who are hunting down runaway leader, Brian Harman, in a tie for fourth place, seven shots adrift of the American.

Left-hander Harman, who fired a brilliant 65, is 10 under — five clear of local hero Tommy Fleetwood, with Austrian Sepp Straka another shot further back.

But Day and Lee are well placed, alongside India's Shubhankar Sharma, to cash in should the American slip over the weekend with heavy rain forecast.

Day shot 67 and Lee a 68, with Smith conceding they now carry Australia's main hopes.

"They're obviously both playing really good golf," Smith said.

"The weather isn't going to be pretty, so I think it's going to be a bit of a grinding weekend. Those two are the best at it."

But he was proud of his own final do-or-die approach to 18 after a difficult day.

"I was aware I had to make birdie to make the cut," said Smith, who ended with a 72.

"I'd have been very mad if I hadn't qualified. Especially the way I've played, I don't think my scorecard reflected the way I'd played."