The Hitech driver held a commanding lead from the start, starting on pole and holding position despite three safety cars.
But his race ended with just five minutes left on the clock, finding the wall in the castle section and allowing Hauger into the lead.
The race ended under safety car, with the Prema rookie claiming his first series feature race win, having taken his first sprint victory in Monaco.
The crash allowed Carlin’s Logan Sargeant into second, his best result so far this season, with championship leader Felipe Drugovich taking the final podium spot, despite having been running in eighth in the early stages.
Starting on pole, Vips made a great start to hold the lead off the line, with Marcus Armstrong taking third from Hauger off the line.
Drugovich fell back several places, ending up in eighth, while Frederik Vesti stalled on the line and was pushed back to the pitlane.
The first safety car came on lap 1, with Amaury Cordeel and Olli Caldwell crashing at Turn 4 in an incident which will be investigated after the race.
Racing resumed on lap 5, with Vips appearing to cross the pit line while preparing to restart the field.
Pitstops got underway three laps later, with Jehan Daruvala among the first to pit for Prema, while Armstrong applied pressure to Liam Lawson on track for second place.
Lawson (Carlin), Hauger and Trident’s Richard Verschoor pitted the following lap, with Hauger emerging in front of Lawson to take net third place.
A well-timed pitstop from Armstrong put him out on track ahead of the pack, before he was passed by Vips on the straight on lap 12 for the net lead, with Verschoor out front on track.
The safety car was deployed again that lap, with Cem Bolukbasi and Roy Nissany making contact with the wall at Turn 2, the latter appearing to lock up down the inside and take both drivers into the barriers.
A chaotic restart came on lap 15, with Armstrong almost taking out his teammate, a lock-up nudging him into the back of Vips at Turn 1 and forcing the New Zealander to pit, though luckily Vips escaped without damage and held the lead.
The virtual safety car was deployed almost immediately after several incidents on the main straight, with Pourchaire and Ayumu Iwasa both suffering front wing damage in separate incidents.
Lawson was also sent tumbling down the field after contact from Jack Doohan gave him a puncture, forcing him to pit and handing Doohan a five-second penalty. Despite crossing the line sixth, the Virtuosi driver was demoted to 13th after the race.
Racing resumed on lap 18, with Williams going straight down the escape road at Turn 3 to hand Vips the on-track lead and promote Sargeant to third place.
But it was heartbreak for Vips on lap 23, ending up in the wall at the Castle section and handing Hauger the lead, with the Estonian driver visibly distraught.
Daruvala took fourth place, marking another strong points haul for Prema, with Verschoor in fifth and Enzo Fittipaldi in sixth for Charouz.
Despite starting from the back of the field, Vesti made his way back up to seventh.
F2 Baku - Feature race results:
| Cla | # | Driver | Team | Gap |
|---|---|---|---|---|
| 1 | 1 |  Dennis Hauger |  Prema Powerteam | |
| 2 | 6 |  Logan Sargeant |  Carlin | 0.400 |
| 3 | 11 |  Felipe Drugovich |  MP Motorsport | 0.900 |
| 4 | 2 |  Jehan Daruvala | Prema Powerteam | 1.600 |
| 5 | 20 | Richard Verschoor | Trident | 2.700 |
| 6 | 22 | Enzo Fittipaldi |  Charouz Racing System | 2.900 |
| 7 | 9 |  Frederik Vesti |  ART Grand Prix | 3.100 |
| 8 | 4 |  Marino Sato | UNI-Virtuosi | 4.700 |
| 9 | 15 |  Ralph Boschung |  Campos Racing | 4.900 |
| 10 | 24 | Jake Hughes | Van Amersfoort Racing | 5.200 |
| 11 | 10 | Theo Pourchaire | ART Grand Prix | 5.300 |
| 12 | 7 |  Marcus Armstrong | HitechGP | 6.000 |
| 13 | 3 |  Jack Doohan | UNI-Virtuosi | 6.900 |
| 14 | 17 | Ayumu Iwasa | DAMS | 7.200 |
| 15 | 5 | Liam Lawson | Carlin | 11.500 |
| 16 | 21 | Calan Williams | Trident | 12.100 |
| 8 |  Jüri Vips | HitechGP | ||
| 16 |  Roy Nissany | DAMS | ||
| 23 |  Cem Bolukbasi | Charouz Racing System | ||
| 12 | Clement Novalak | MP Motorsport | ||
| 25 |  Amaury Cordeel | Van Amersfoort Racing | ||
| 14 | Olli Caldwell | Campos Racing | ||
| View full results | ||||
