The Georgian team remains unbeaten in the league in 2025, while Malmo has struggled with form recently in the Allsvenskan, managing to win only one of their last five matches.
However, their domestic struggles were forgotten just eight minutes into the match at the Mikheil Meskhi Stadium, as Malmo netted the first goal of the entire 2025/26 UCL season.
Oliver Berg's low shot was saved by Giorgi Makaridze, but the goalkeeper couldn't prevent the rebound from reaching Busanellowho slotted the ball home from close range.
Iberia dominated the early stages of the second half, but they failed to create a clear chance to equalize.
This lack of conversion proved costly just before the hour mark when Malmo scored with their first shot on target after the break.
The ball was played across the edge of the box to Daniel Tristan Gudjohnsen on the left - he cut inside and caught the goalkeeper off guard by shooting low towards the near post.
The home side continued to create opportunities, but Malmo extended their lead within the final 20 minutes.
Taha Ali charged in from the left flank, leaving defenders behind as he dribbled along the edge of the penalty area before striking the ball past Makaridze into the top of the net for a spectacular individual goal.
Iberia believed they had a chance to get back into the match with 10 minutes remaining when awarded a penalty, but the referee reversed his decision after a VAR review, concluding that Busanello had not committed a foul.
Nevertheless, the home side would not be denied the goal their performance arguably warranted - four minutes from time, a deep Luka Silagadze cross was headed in by Anes Rusevic for 3-1.
MFF will aim to secure their place in the Second Qualifying Round when they host the second leg next Tuesday.