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UEFA have fined Real Madrid 15,000 euros ($17,000) after one of their fans performed a Nazi salute before a Champions League match last week.
The European football governing body's disciplinary board also issued Real with a partial stadium closure of 500 seats, suspended for a one-year probationary period.
UEFA punished Madrid "for the racist and/or discriminatory behaviour of its supporters" in the second leg of their play-off round victory over Benfica on February 25, European football's governing body said in a statement.
Real ejected a supporter caught on camera performing a Nazi salute in the stands before the match began.
The first leg of the tie was marred by an incident of alleged racism aimed at Real winger Vinicius Junior by Benfica's Gianluca Prestianni, who denies it.
Madrid progressed to the last 16 where they will face Premier League side Manchester City.
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