In front of a packed crowd at the Maimarkthalle in Mannheim, Bully Boy averaged slightly better with 97 compared to MVG's 95 but a dominant display of doubling was key for the world champion as he landed six of his 10 attempts as Smith spurned seven of his nine.
Despite falling 2-1 behind early on, Van Gerwen won five straight legs to take the victory and progress.
Last weekend's runner-up at the Austrian Darts Championship will now have the chance to get revenge on the player who beat him in the final, Mensur Suljovic, in Sunday's third round.
Averaging 101.97 - the highest of the evening - the Suljovic raced to a 5-0 lead before Kim Huybrechts avoided the whitewash with his solitary leg in a 6-1 defeat.
Last year’s finalist William O’Connor made it to the final day of action as he stunned Peter Wright in a last-leg decider.
The Irishman was clinical on three-figure checkouts, landing finishes of 100, 118 and a match-winning 105 on his way to victory.
Poland’s Krzysztof Ratajski was also pushed to a last-leg decider as he beat Keegan Brown 6-5 to set up a clash with Adrian Lewis, who beat Dirk van Duijvenbode 6-2.
UK Open champion Nathan Aspinall was sent packing in a 6-3 defeat to Wayne Jones, who progressed to the third round of a European Tour event for the first time this year.
Jones raced into a 4-1 lead, and despite Aspinall closing the gap to one at 4-3, the 54-year-old raced on and sealed victory with a 141 checkout.
He will now meet James Wade, who defeated Bradley Brooks 6-2.
Two home-favourites also departed the tournament as Ricky Evans beat Karsten Koch 6-3, and Ian White saw off Gabriel Clemens by the same score line.
And in the final game of the evening, Joe Cullen eased past Jamie Hughes 6-3 to set up a third round clash with O’Connor.
Earlier in the day, Rob Cross and Gerwyn Price were the standout performers of the afternoon.
The latter achieving a 102.16 average in a 6-3 demolition of Simon Stevenson, while Cross whitewashed German qualifier Marvin Wehder.
Dave Chisnall opened the session with a 6-2 victory over 23-year-old Ryan Meikle, with Jonny Clayton following Chisnall into the final day after surviving a scare in a hard-fought 6-4 victory over Scott Taylor.
World Matchplay semi-finalist Glen Durrant safely progressed to the third round as he saw off Cody Harris 6-3, whilst Daryl Gurney beat John Henderson 6-4 to ensure his progression.
Saturday results & Sunday schedule
Saturday September 7
Second Round
Afternoon Session
- Dave Chisnall 6-2 Ryan Meikle
- Jonny Clayton 6-4 Scott Taylor
- James Wade 6-2 Bradley Brooks
- Adrian Lewis 6-2 Dirk van Duijvenbode
- Glen Durrant 6-3 Cody Harris
- Daryl Gurney 6-4 John Henderson
- Gerwyn Price 6-3 Simon Stevenson
- Rob Cross 6-0 Marvin Wedher
Evening Session
- Ricky Evans 6-3 Karsten Koch
- Ian White 6-3 Gabriel Clemens
- Krzysztof Ratajski 6-5 Keegan Brown
- Michael van Gerwen 6-2 Michael Smith
- Mensur Suljovic 6-1 Kim Huybrechts
- William O'Connor 6-5 Peter Wright
- Wayne Jones 6-3 Nathan Aspinall
- Joe Cullen 6-3 Jamie Hughes
Sunday September 8
Afternoon Session (1200 BST)
Third Round (Best of 11 legs)
- Michael van Gerwen v Mensur Suljovic
- Adrian Lewis v Krzysztof Ratajski
- Daryl Gurney v Rob Cross
- Dave Chisnall v Ricky Evans
- Ian White v Jonny Clayton
- James Wade v Wayne Jones
- William O'Connor v Joe Cullen
- Gerwyn Price v Glen Durrant
Evening Session (1815 BST)
Quarter-finals (Best of 11 legs)
- Four matches, played in draw bracket order
Semi-finals (Best of 13 legs)
- Two matches, played in draw bracket order
Final (Best of 15 legs)
- Winner SF 1 v Winner SF 2
Click here for full tournament results & schedule
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