New Bellator Champ -- My Eye is BUSTED ... But I Got a Sweet Homecoming

Eddie Alvarez took home more than just the Lightweight title from Bellator 106 this weekend ... he also left with GNARLY stitches over his eye.

Alvarez and Michael Chandler went toe to toe for 4 rounds ... but Eddie took home the belt after a split decision.

The 29-year old fighter showed off his intense victory stitches from the hospital the following day and surprisingly said he was "all better."

Don't feel too bad for Eddie ... 'cause when he got home his neighbors had setup a huge banner in the new champ's front yard to welcome him home.

Coolest neighbors.