The two four-time Grand Slam champions were meeting for the first time since 2018, when Osaka beat Sabalenka at the US Open en route to her maiden major title, but the Belarusian's power proved too much for the former world number one.
"Yeah that's crazy, for so many years we only played once. I'm pretty sure we are playing many more matches, she's coming back playing great tennis," Sabalenka said in her on-court interview. "I'm pretty happy for the result today, much better than last time."
Osaka began confidently with a strong opening service game, but top seed Sabalenka soon found her rhythm and capitalised on a brief dip from the Japanese, breaking for 2-1 after two double faults.
The Belarusian tightened her grip with a barrage of powerful backhands to lead 5-2, then served out the set comfortably with an ace.
After a series of solid holds from both players early in the second, Sabalenka again used her firepower to take control, breaking again for a 4-2 lead that proved decisive as she closed out victory to continue her run in the tournament without dropping a set.
"I'm happy that I put so much pressure on her today, that I brought variety to the court," Sabalenka added. "My serve worked well. On the return, I played really great tennis. Happy with my performance for sure."
In the men's draw, Alexander Zverev saw off Frances Tiafoe 6-3, 6-4, converting two of three break points and firing 14 aces to seal his ninth win over the 21st-seeded American.
He will next face France's Arthur Fils as he looks to reach his first Indian Wells semi-final.
Fils earlier produced a stunning 6-3, 7-6(9) win over Canadian ninth seed Felix Auger-Aliassime, saving five set points and rallying from 0-5 down in the second-set tiebreak to book a place in the quarter-finals for the second consecutive year.