Slovenia's Dalila Jakupovic was leading 6-4 5-6 against Switzerland's Stefanie Vogele, but was unable to finish her service game at the end of the second set.
"It was very hard for me to breathe for the whole match. After 20 minutes I already had difficulties," Jakupovic exclusively told CNN's Amanda Davies.
"I wasn't able to make more than three shots running left and right because I was already getting an asthma attack. I don't have asthma normally."
Jakupovic said that she was given a breathing apparatus by a physio in the first set, but began to feel worse at the end of the second.
"I just couldn't breathe," she said. "I couldn't walk so I just went down (onto the floor) because I couldn't stand up straight.
"After that I had a panic attack because I couldn't get air. It was very hard, I have to say. It was one of my hardest matches."
Jakupovic also urged tournament organizers to do more to assist players while the poor air conditions are ongoing.
"We are all p*ssed and a bit disappointed because we thought they would take better care of us," she added.
"Also my opponent after the match said she also had trouble. Not as bad as me, but she said she couldn't breathe normally because of the air.
"It's not the way you want to compete like this to have (these) problems ... It's not the ideal situation."
The world No. 82, who was potentially a tie break away from winning her match against Vogele when she withdrew, said the conditions weren't like anything she had experienced before.
"We were talking about it but (organizers) said that they checked and that the air was fine," she said.
"Obviously this is not pollution it's smoke so it's a bit different to what we are used to. We play in China, we play in other countries and cities that are polluted but this is smoke, it's something that none of us have experienced before.
She wasn't the only player to comment on the hazardous conditions ahead of the year's first grand slam.
Frenchman Gilles Simon was also critical.
Australian Open organizers said conditions were improving and "constantly being monitored."
"As always the health and safety of our players, our staff and our fans is our priority," said a statement, which added that further decisions would be made using on-site data, consultation with the medical team, the Bureau of Meteorology and scientists from EPA Victoria.
The Kooyong Classic in Melbourne's suburbs, one of a number of warmup tournaments ahead of the Australian Open, was also affected by the smoke.
Maria Sharapova's match against Germany's Laura Siegemund was cut short with the players tied at 5-5 in the second set.
"After two-and-a-half hours that was the right call for me. I think both of us felt it," Sharapova told reporters.
"In the unlikely case of extreme smoke conditions, the roofs will be closed on the three stadium courts and play will continue in their air-conditioned, air-filtered environment," the official account tweeted.
"If smoke infiltrates the three stadium courts the air conditioning system will filter it out."
Three of the Australian Open's show courts at Melbourne Park -- Rod Laver Arena, Margaret Court Arena and Melbourne Arena -- have retractable roofs that are closed in the case of rain or extreme heat, and the site also hosts the National Tennis Center, which has eight further indoor courts.
Players and organizations across the sport have committed to supporting bushfire relief efforts.
The Australian Open is also set to host a rally for relief exhibition in Melbourne Park on Wednesday, which will feature Serena Williams, Roger Federer and Rafael Nadal.
The grand slam gets under way next week and runs from January 20 to February 2.
Additional reporting by Divya Gopalan