Federer, 31, easily accounted for Canada's big-serving Milos Roanic 6-4, 7-6 (7-4) and 6-2 on Monday night to advance to the last eight contenders.
The 17-times Grand Slam winner has not conceded a service game in his campaign so far.
Federer remains firmly on track for a semi-final showdown with Britain's Andy Murray late this week, ahead of a possible shootout with World No.1 and reigning Australian Open champion Novak Djokovich for the title on Sunday.
Raonic, the No.13 tournament seed, found himself kicked to the Australian Open fourth round kerb by Federer despite doing little wrong against one of the greatest of all time.
But the barest of openings offered by the big Canadian were enough for Federer to pierce his defences and book a quarter-final appointment with Frenchman Jo-Wilfried Tsonga.
Raonic's serve faltered just once in a 10-game opening set - in the last game as Federer increased the pressure exponentially, then took full advantage of his only set point.
In the second set, the Canadian then held his nerve and his serve through to roll into a tie-break.
The early signs were good, until the No.2 seed uncorked a couple of huge winners to take an advantage, then whipped in a superb forehand winner backed by a guttural roar to seal it.
Raonic's spirit was broken along with his serve in the opening game of the third set, and Federer backed the truck over him again for a second service break soon after.
The highlight of the set - and perhaps of the match - was Federer's deft drop shot return on Raonic's serve which fell dead just over the net cord in the fifth game.
Earlier on Monday, Tsonga beat countryman Richard Gasquet 6-4 3-6 6-3 6-2 to book his quarter-final place.
Additional reporting from AAP.