The collaboration was originally recorded for Coldplay's fifth studio album Mylo Xyloto, which was released late last year.
The performance opened with Rihanna delivering a rendition of her hit single 'We Found Love' surrounded by several dancers.
The singer also shouted "Make some noise for Whitney!" during the track, encouraging the audience to recognise the late Whitney Houston.
Rihanna was then joined by Coldplay frontman Chris Martin on acoustic guitar for 'Princess of China', which then segued into 'Paradise' performed by the full band.
Reports have hinted that Coldplay and Rihanna will collaborate at the forthcoming Brit Awards, while it has also been rumoured that Martin will duet with Noel Gallagher at next week's London ceremony.
The Grammys telecast also saw Sir Paul McCartney joined by Bruce Springsteen and Foo Fighters frontman Dave Grohl, while Jennifer Hudson paid tribute to Houston by singing 'I Will Always Love You' to close the ceremony's 'In Memoriam' segment.
More from the 54th Grammy Awards:
> Grammy Awards 2012: Adele 'moved to tears by Album of the Year'
> Grammy Awards 2012: Nicki Minaj 'exorcised' in performance
> Grammy Awards 2012: Katy Perry performs new single 'Part of Me'
> Maroon 5, Foster the People join Beach Boys at 2012 Grammy Awards
> Grammy Award winners Foo Fighters: 'Music doesn't have to sound perfect'
> Adele, Amy Winehouse, Foo Fighters win at Grammys pre-telecast
> Grammy Awards 2012: The major winners