The British No. 4 produced a spirited performance and took the first set off the Canadian on a tie-break after no break-point opportunities fell for either player.
Raonic, the number one seed, then broke Bedene twice in the second to take it to a decider, but once again the pair were evenly matched as it headed to a tie-break.
A mini-break fell Raonic’s way and the 26-year-old did not look back, winning three straight points to complete the victory.
Raonic will play Bernard Tomic for a place in the semis after the Australian brushed past Rogerio Dutra Da Silva 7-5 6-3
Elsewhere in the tournament, second seed Marin Cilic comfortably beat Damir Dzumhur 6-3 6-2 to reach the last eight, while Steve Darcis overcame Jiri Vesely 6-2 6-1.
Read the original article on Eurosport: Raonic survives Bedene scare in Istanbul