Super Giants captain KL Rahul (68) and Deepak Hooda (51) were the standout performers in the Lucknow innings as they set their opponents 170 to win.
Sunrisers had looked in a strong position to chase down that total at 143-4 with just under three overs left, only for a late collapse to see them fall well short.
The Super Giants were three down within the first five overs, with two wickets for Washington Sundar (2-28) in his first seven balls, claiming Quinton de Kock and Evin Lewis for a single run each, then, immediately after hitting a big six, Manish Pandey (11) could only find Bhuvneshwar Kumar from Romario Shepherd's delivery to leave them 27-3.
Hooda came to the crease and rescued things with Rahul, putting on a partnership of 87 before the former fell to Shepherd, with Thangarasu Natarajan (2-26) taking the late wickets of Rahul and Krunal Pandya (6) to seemingly limit Lucknow.
However, Abhishek Sharma (13) and Kane Williamson (16) failed to eat much into the target, and despite solid efforts from Rahul Tripathi (44) and Nicholas Pooran (34), Hyderabad ultimately fell short, with Jason Holder (3-34) taking three wickets for just three runs in the final over.
Skipper leads the way with the bat
Rahul and Hooda were the only batsmen for the victors to score 20 or more runs, but that was all that was needed after their efforts, with the captain hitting six fours and one six.
Hooda struck three fours and three sixes, and grabbed his second half-century of the IPL season so far.
Bowling attack comes to the fore
This was a classic case of the batsmen setting a defendable total, but then the bowlers having to earn their place by seizing control back late on.
Avesh Khan impressed with 4-24 from his four overs, including taking both Sunrisers openers, while Krunal (2-27) and Holder performed crucially at the death.
The Blacks Caps looked primed to make it 2-1 with two matches to play after they were set 180 to win in Hamilton on Wednesday courtesy of Kane Williamson's highest T20I score.
New Zealand needed just three to win off five balls in the last of their 20 regulation overs after Ross Taylor hit Mohammed Shami for six, but Williamson fell for a magnificent 95 two balls later.
There was more much more drama to come, with Taylor bowled off the last ball to leave the scores level with the hosts 179-6.
Williamson and Martin Guptill posted 17 off the extra over from Jasprit Bumrah and it appeared that would be enough with Rohit – who earlier top scored with 65 in India's 179-5 – needing 10 off two deliveries from Tim Southee, but the opener hammered the paceman for two sixes in a pulsating finale.
The stunning victory sealed India's first T20 series win in New Zealand, with Williamson and his side left shell-shocked again six months after a Super Over loss to England in the Cricket World Cup final, with the same opponents beating by the same method in November.
Williamson must have been fearing the worst when India were 69 without loss after the powerplay, Rohit clubbing three sixes in a sixth over from Hamish Bennett (3-54) that went for 27.
Colin de Grandhomme ended an opening stand of 89 when he had the in-form KL Rahul (27) taken by Colin Munro at point and the powerful Rohit was caught by Southee at long-on attempting to launch Bennett for another six.
Virat Kohli (38) became the expensive Bennett's third victim before Manish Pandey and Ravindra Jadeja dispatched slower balls from Southee for six in a final over that cost 18 runs.
Martin Guptill blasted the second ball of the run chase from Shardul Thakur (2-21) beyond the rope, but the fast bowler sent the opener packing for 31 after he had struck another two sixes.
Munro and Mitchell Santner missed out, but Williamson raced to a 28-ball half-century before punching Jadeja for back-to-back sixes with exquisite timing.
The skipper also set about Bumrah after de Grandhomme fell to Thakur, but he was unable to see New Zealand home, edging behind to end a stunning 48-ball masterclass that included six sixes.
New Zealand must have felt a sense of deja vu when Taylor was cleaned up by Shami (2-32) to extend the match and Rohit proved to be the Super Over hero on this occasion as Southee was given the treatment.
Root has enjoyed a brilliant 2022, posting his fourth red-ball international century of the year against New Zealand in the second Test.
It took Root just 116 balls to reach three figures at Trent Bridge, the fewest he has ever scored a century in his Test career, and he has now converted 10 of his last 14 fifties into 100s (71 per cent).
The Yorkshire batter would go on to make 176 in the first innings, hitting 26 fours – the most recorded in an innings by an English batter since Zak Crawley hit 34 in his 267 versus Pakistan in 2020.
That helped England to an unassailable 2-0 series lead over the World Test champions New Zealand, after Jonny Bairstow scored the second-fastest red-ball century for his country on Tuesday.
Root's second century of the series came after his heroics at Lord's, in which he passed 10,000 Test runs with a majestic unbeaten 115, his first fourth-innings international hundred.
The 31-year-old, who stepped down from captaining England in April, has been rewarded with top spot in the world Test batting rankings as he reached the summit for the first time since December 2021.
Labuschagne has dropped down to second, with Australia team-mate Steve Smith in third, while Pakistan captain Babar Azam and New Zealand skipper Kane Williamson make up the top five.
Black Caps number five Daryl Mitchell has also enjoyed a big rise up the rankings after his 190 and 69 not out in the second Test against England, jumping from 50th to 17th.
Meanwhile, in the bowling ratings Australia captain Pat Cummins remains top ahead of India's Ravichandran Ashwin, whose team-mate Jasprit Bumrah is in third.
That is due to Kyle Jamieson dropping three places down to sixth, with Pakistan quick Shaheen Afridi and South Africa star Kagiso Rabada moving up a place to fourth and fifth respectively.
Roy hit 44 as the Sunrisers, who sit bottom of the table with their play-off hopes already over, earned only their third win of a torrid Indian Premier League season at the Sheikh Zayed Stadium.
Already assured of a play-off berth, RCB were aiming for a fourth successive victory that would strengthen their hopes of finishing in the top two.
Virat Kohli's side were set a target of 142 and headed into the final over needing 13, following knocks of 41 and 40 from Devdutt Padikkal and Glenn Maxwell respectively.
AB de Villiers, who finished on 19 not out, edged RCB closer to the total with a huge six off Bhuvneshwar Kumar's fourth ball of the final over to leave six required from the last two deliveries.
However, Kumar showed all of his experience to wrap up the victory, conceding just one run off his final two balls, as RCB fell narrowly short on 137-6.
Joy for Roy
The England opener made a top-scoring contribution for the Sunrisers, with a knock of 44 from 38 balls.
He and skipper Kane Williamson hit combined in a 70-run partnership in 9.4 overs to provide the platform for their side to build upon.
History for Patel
Despite the defeat, it was a historic day for Harshal Patel, who set a new record of most wickets by an Indian bowler in an IPL season as he surpassed Jasprit Bumrah's tally from the previous season (27).
The right-arm bowler claimed an impressive 3-33 as he dismissed Williamson, Wriddhiman Saha and Jason Holder.
That took Patel's tally in this season's IPL to 29; seven clear of nearest challenger Avesh Khan, who has impressed for the Delhi Capitals this term.
Chennai posted 154-7 from their 20 overs, with Moeen Ali top scoring with 48 runs, and the Sunrisers surpassed the target with 14 balls remaining to pick up their first win of the season.
Abhishek Sharma played a key role for the Sunrisers with 75 off 50 balls, while Kane Williamson (32), Rahul Tripathi (39 not out) and Nicholas Pooran (five no) also chipped in.
Put in to bat first, the Super Kings had lost the wickets of Robin Uthappa (15) and Ruturaj Gaikwad (16) within the powerplay, and their innings was rather stop-start throughout.
Moeen aside, the struggling defending champions could not find any rhythm as Thangarasu Natarajan (2-30) and Washington Sundar (2-21) helped restrict them to a gettable target.
Mukesh Choudhary gave the Super Kings hope when making a breakthrough with the wicket of Williamson, but Sharma cut down the gap between runs required and balls remaining.
The opener led the chase with a first IPL half-century before being dismissed in the 18th over, by which time he and Tripathi had already done much of the damage.
Tripathi finished off the run chase in style by hitting a four off Dwayne Bravo to get the Sunrisers off the mark for the campaign.
Sharma shakes it up
Sharma has come under pressure as an opener but more than delivered here, with his 75 runs consisting of five fours and three maximums.
He will be disappointed with the manner of his exit with just 10 runs required for victory, the young all-rounder caught by Chris Jordan when trying to hit a huge one.
Super Kings lose again
Defending champions CSK have lost their first four IPL matches for only the second time, with the other instance coming in 2010 when, impressively, they went on to win the title.
On the basis of their displays so far, it will take some doing to repeat that feat of 12 years ago.
Sompal Kami knew that two runs from the final ball of the match would secure an unlikely triumph, but batting partner Ghulsan Jha was run out at the non-striker's end to conclude their first meeting in international cricket.
South Africa were restricted to 115-7 with opener Reeza Hendricks producing 43 runs from 49 balls, ultimately handing the initiative to their opponents to keep their Super 8s hopes alive.
Nepal would last until the eighth over before losing Kushal Bhurtel and Rohit Paudel in three balls, but the Rhinos would steady the ship, leading to a nail-biting finish.
However, Tabraiz Shamsi (4-19) struck twice in a game-changing 18th over, aided by Ottniel Baartman denying seven runs in the final over to decide the tie.
South Africa face the United States in Antigua on June 19, while Nepal search for their first win of the tournament as they take on Bangladesh in their final Group D game.
Meanwhile, New Zealand secured their first win of their T20 World Cup campaign with relative ease, beating Uganda by nine wickets at the Brian Lara Cricket Academy.
The Black Caps exit from the tournament had already been confirmed following Afghanistan's seven-wicket triumph over Papua New Guinea, exiting a World Cup before the last four for the first time since 2014.
Trent Boult dictated the early pace of the encounter, taking two wickets inside the first over as their opponents quickly saw five wickets fall for just 15 runs.
Kenneth Waiswa was the only batter for the Cricket Cranes to reach double figures, as wickets from Tim Southee (3-4) and Mitchell Santer (2-8) in successive balls saw Uganda all out for 40.
Kane Williamson's side faced just 33 balls on their way to victory, as Devon Conway scored an unbeaten 22 from 15 balls to win the contest ahead of their final Group C fixture against the Barramundis.
England enforced the follow-on after bowling out the Black Caps in the first session, with the hosts having resumed at 138-7 following the tourists' first innings score of 435-8 declared.
New Zealand openers Tom Latham (83) and Devon Conway (61) batted through 19 overs to lunch and then through the entire second session to bring the contest back to life.
But the pair both lost their wickets to spin in the final session along with Will Young for 8 as New Zealand reached stumps 202-3, still behind by 24 runs.
Kane Williamson (25 not out) and Henry Nicholls (18 not out) will resume at the crease on day four, hoping to build a sizeable lead to help New Zealand have a shot at a series-levelling victory in the two-game Test series.
Earlier, Tim Southee smashed 73 from 49 balls to rescue New Zealand from a perilous state in their first innings, combining with Tom Blundell (38) for a 98-run eighth-wicket stand.
Southee's knock included six sixes and five fours, narrowing the gap on England's first innings score after Jimmy Anderson had decimated the batting line-up on day two.
Stuart Broad (4-61) claimed all three of the remaining first-innings wicket to hold a 226-run first-innings lead, before captain Ben Stokes opted to enforce the follow on, although he may have been regretting that with Latham and Conway putting on 149 runs for the first wicket.
Jack Leach dropped a tough one-handed caught-and-bowled chance from Latham on 62, before he got Conway caught from an inside edge by Ollie Pope at short leg.
Three overs later Joe Root's part-time spin trapped Latham lbw, with the shout holding up despite a review from the batsman.
Leach bowled Young cheaply, while he had Nicholls dropped by Pope at short leg on 4, before he and Williamson got through to stumps.
Williamson moves within NZ history
Kane Williamson needs only four runs on Monday to become New Zealand's outright all-time Test leading run scorer. Williamson moved to 7680 runs with his unbeaten 25, within three of Ross Taylor's record of 7683.
Taylor played 112 Tests to reach that mark, while 32-year-old Williamson has only needed 92 games. Stephen Fleming is third on the list with 7172 runs from 111 Tests.
Southee into top 10 for most sixes
New Zealand captain Southee is known for his bowling exploits but his swashbuckling knock included six maximums that saw him move equal 10th on the all-time list for most sixes in Test cricket alongside Andrew Flintoff and Matthew Hayden.
Southee, whose highest Test score is 77 not out, has 82 Test sixes, with the record held by opposition skipper Stokes at 109. Opposition coach and former teammate Brendon McCullum is second on the list with 107.
Pant signalled his intent with a six in the first over of the second day, but a dreadful mix-up with Ajinkya Rahane left him high and dry, albeit a superb direct hit from Ajax Patel played its part.
India lost five wickets for just 43 runs to crumble to 165 all out before lunch, and Kane Williamson's 89 was influential in New Zealand posting 216-5 at the close of day two for a lead of 51.
"I think the run out of Pant was a big play this morning," said Southee, who was bowling at the time and finished with 4-49.
"With him being such a dangerous player, especially leading into the second new ball, he could score really quickly along with Jinks [Rahane].
"We knew that once we could open up an end and face the bowlers, Jinks would look to play a bit more aggressively and that brings you into a play a bit more.
"I think the way we bowled this morning was pretty good."
Williamson fell short of what would have been a welcome century after a difficult time in the 3-0 series defeat to Australia.
But the captain's stand of 93 with Ross Taylor (44) – playing his 100th Test – put the Black Caps in a promising position that Southee hopes the hosts can build on.
"You always want your best players to be at the crease. They [Williamson and Taylor] put on a great partnership, both looking nice for a long period of time," he added.
"If we can carry on and keep chipping away with the guys to come then it will set us up."
India fought back late in the day with three wickets in the final session and Ishant Sharma's (3-31) performance was particularly important.
Sharma arrived late in New Zealand due to his recovery from a torn ankle ligament and he has been coping with jet lag.
Southee paid tribute to the right-arm quick, saying: "He's been a word class bowler for a long time.
"When you're slightly underdone in terms of preparation and having an injury coming into the series, you can call on previous experience.
"He has played 90-odd Test matches and he knows what he needs to do to get himself right for a Test match, and when the preparation isn't ideal, he is able to find ways to perform like he has."
It has been reported that the relationship between Stead and Black Caps captain Williamson has deteriorated, with speculation that the head coach wanted Tom Latham to take over as Test skipper.
Stead denied that was the case back in May and although he says there is "positive conflict" between the two, the 48-year-old insisted they have no problem working together.
He told Stuff: "Kane and I have a really strong relationship, and we spoke about it.
"There was no basis in truth and the disappointing part is it's coming from somewhere and someone, but it's not Kane and it's not I.
"I really enjoy working with Kane. The discussions we have are robust and always directed at what's best for the team, which is something I know we are truly aligned on.
"It's like any business, you always have positive conflict and if there wasn't, then I'd be worried."
Stead is nearing the end of the two-year deal he signed to replace Mike Hesson, but hopes to extend his tenure.
"Talks have been pretty positive and, if New Zealand Cricket and the players feel as though I can keep contributing then I'd be interested in continuing on," he added.
New Zealand have not played since March due to the coronavirus pandemic and are not due to be in action until hosting West Indies in a Test series in November, subject to government approval.
Stokes replaced Joe Root as captain at the end of April and New Zealander Brendon McCullum has since been installed as head coach.
All-rounder Stokes takes over with England having failed to win any of their past five series and languishing at the bottom of the World Test Championship.
James Anderson and Stuart Broad have been recalled for Stokes' first match as permanent skipper, while paceman Matthew Potts will make his debut in London on Thursday.
The new captain does not want to hear talk of a 'reset' in the longest format ahead of the three-match series against the Black Caps, as he challenged both older heads and new faces to step up.
"I just want everyone to feel free under my captaincy," Stokes said.
"Obviously there has been talk around the word 'reset', which is something I don't particularly like. I just see this as a complete and utter blank canvas for this Test team going forward.
"We have got so much experience in that dressing room, with myself, Joe, Broady, Jimmy, Jonny [Bairstow], and at the other end we've younger lads with inexperience, but this is our time. We are going to dictate how things go, going forward.
"There is nothing on this blank canvas. Everyone is starting fresh now, whether you are Matt Potts or Stuart Broad or Jimmy Anderson."
New Zealand beat India in the inaugural World Test Championship at the Ageas Bowl last year, but they failed to win their three series since.
The Black Caps drew 1-1 with Bangladesh and South Africa on home soil following a series loss in India.
New Zealand are undefeated in their previous seven Tests against England, winning four and drawing three, but have not celebrated a Test victory at Lord's since 1999.
Potts to bring the potency England have lacked?
Potts gets his chance after making a brilliant start to the season for Durham.
The 23-year-old is the leading wicket-taker in the County Championship with 35 at an average of 18.57. He comes into the team with Jofra Archer, Mark Wood, Ollie Robinson, Olly Stone and Saqib Mahmood on the list of absentees.
Anderson and Broad return after they were overlooked for a 1-0 series defeat against West Indies in the Caribbean.
Little time to adjust for tourists' IPL contingent
Captain Kane Williamson, Devon Conway, Daryl Mitchell, Tim Southee and Trent Boult will have to make a swift adjustment to red-ball cricket after Indian Premier League stints.
Boult is not expected to play in the first Test after playing in the final for Rajasthan Royals last weekend.
Williamson was dismissed for a duck in a defeat against a First Class Counties XI after a poor IPL season with the bat, but it will surely not be long before the skipper returns to form.
It appears Warner will also be dropped by the struggling Sunrisers for Sunday's game against the Rajasthan Royals after the franchise revealed a change to the overseas combination will be made.
Warner scored a half-century in a midweek defeat to the Chennai Super Kings, but took "full responsibility" for the loss as he "batted too slowly."
The Australia batsman had previously questioned the decision to omit Manish Pandey from the team and Warner could now find himself out of the side, with Jason Roy awaiting his chance.
Sunrisers are rooted to the bottom of the table with five defeats from six matches and New Zealand skipper Williamson will lead them for the rest of the tournament.
A statement released by the franchise on Saturday said: "Sunrisers Hyderabad would like to announce that Kane Williamson will be taking over the captaincy for tomorrow's match and for the remainder of the IPL 2021.
"The team management has also made the decision that they will be changing the overseas combination for tomorrow's match against Rajasthan Royals.
"This decision has not come lightly as the management respects the enormous impact David Warner has had for the franchise over a number of years.
"As we face the remainder of the season, we are sure David will help us thrive for success both on and off the field."
The Black Caps were up against it when they needed 57 to win off the final four overs at Zayed Cricket Stadium after England had posted 166-4 in the first semi-final on Wednesday.
But opener Mitchell sealed a dramatic five-wicket win with an over to spare, finishing unbeaten on 72 from 47 balls after Neesham had blasted 27 from just 11 deliveries in Abu Dhabi.
The game had swung in England's favour when Liam Livingstone (2-22) conceded only three runs and dismissed Glenn Phillips in the 16th over, having also had Devon Conway (46) stumped.
Neesham then cut loose in a 17th over from Chris Jordan that went for 23 and although he fell to Adil Rashid, Mitchell finished off the job to set up a final against Pakistan or Australia in Dubai on Sunday.
New Zealand had been in big trouble on 13-2 after Chris Woakes dismissed Martin Guptill and Williamson, who was full of praise for Mitchell and Neesham.
The Black Caps skipper said during the post-match presentation: "We've played each other on a number of occasions, I knew it would be a great game of cricket, and really chuffed with the heart that was shown throughout that performance.
"It was outstanding from Mitchell at the top but cashing in on the match-ups [was vital]. His character stood out today, an incredible knock.
"T20 cricket is a game of small margins, depending on the surface, short side...can all be match-defining.
"We had wickets in hand, which was really important. Neesham came out and hit the ball hard and changed the momentum of the game. Ultimately the deciding factor."
Moeen Ali had top scored with 51 not out off 37 balls and Dawid Malan made 41 after Williamson won the toss and put England in.
Williamson, who was dropped on 21 by Josh Hazlewood, struck 85 from just 45 balls to guide his side to 172-4 from their 20-over allocation in Sunday's final.
That was the joint-highest score in a T20 World Cup final – along with Marlon Samuels' knock against England in 2016 – and the fastest-half century ever scored in the showpiece of the competition.
However, Williamson held those records for a short time as Mitchell Marsh, who blasted his first ball over square leg for six, delivered a brutal unbeaten 77 from 50 deliveries to see Australia over the line.
After Australia completed their second magnificent run chase in four days, following victory over Pakistan in the semi-final, Williamson admitted New Zealand's trans-Tasman rivals never gave his side a chance in the chase.
"We were trying to get a bit of a platform and the surface was holding a platform," Williamson said during his post-match interview on the field.
"We got what we thought at the halfway stage was a good total, but it was chased superbly by Australia.
"We made every effort to get a good total. Guys came out and committed to their plans. We weren't far away but having said that, credit to the way Australia chased that total. They did not give us an inch.
"I'm really proud of our teams efforts throughout the tournaments. We came here and gave it our best shot, but it wasn't good enough tonight."
Trent Boult, whose figures of 2-18 proved in vain, provided New Zealand with the briefest glimmer of hope when he bowled David Warner (53) in the 13th over.
But Williamson appreciated that Australia were a class above as he looked back on yet another final loss, previously losing to England in the 2019 World Cup.
"Australia are a team full of amazing players," he added. "Today they really turned it on.
"We finish this campaign and such is life in the international schedule is you move your focus. No doubt we're feeling this one a little bit.
"We had high hopes coming into the game. It's never nice. You sign up to these sort of things. It's just a shame we couldn't get the job done tonight."
England and the Black Caps do battle at Zayed Cricket Stadium on Wednesday in a repeat of the 50-over World Cup final in 2019, when Morgan's side were crowned champions in the most dramatic fashion at Lord's.
Jason Roy has joined Tymal Mills on an injury list that already included Jofra Archer, Sam Curran and Ben Stokes.
England have won three of their past four T20 World Cup matches against New Zealand, one of those coming in a semi-final five years ago.
Captain Morgan says it would be a huge feat if they could defeat Kane Williamson's side once again in Abu Dhabi to set up a showdown with Pakistan or Australia.
The batsman said: "I wouldn't say [England are] strong favourites. New Zealand have a full-strength squad, we've obviously been hampered with a lot of injuries throughout this tournament.
"I think of all the things we've done well throughout this tournament, probably the strongest point has been the resilience within our squad to be able to find a way to move forward and forge on.
"We're playing really good cricket, the guys are extremely excited about the challenge against New Zealand and potentially the opportunity that might follow that.
"You might only get to the final and lose but getting to the final would be a hell of an achievement. We can't wait."
Morgan refused to be drawn on who will replace Roy at the top of the order to partner Jos Buttler, with another bowler coming into the side being one of the options.
"Within the group we’ve made a decision, I'm not willing to share that, unfortunately, but also the balance of the side will be determined on how the wicket looks and how we match-up against the Black Caps," Morgan added.
"Replacing him with another bowler would mean that you have 28 genuine overs on the field and a lot of options. If you were to go with a batter, it would mean a like-for-like replacement.
"Depending if it's a really good batting wicket, predicting if it's going to be a really good batting wicket, we might need the extra bit of bowling. If it's not, you might need the extra bit of batting.
"We're lucky, we have guys who queue up and want to bat in that top three, which is great because they want to go head-to-head with the big-name players in the tournament and big-name bowlers in the opposition."
Black Caps skipper Williamson knows England have the strength in depth to replace Roy.
He said: "I suppose whenever there's an injury, someone else comes in and you're not to know who they are until the toss. But you try and prepare and plan as best you can and then when you go out there, you're sort of competing in the moment.
"And that all matters then. But Jason's a big player for England and has been playing really nicely and getting the team off to good starts along with Jos.
"But as I mentioned, the depth on the England side is one of their strengths and we'll try and plan accordingly to the best of our ability.
"But largely [we] want to focus on the sort of cricket that we want to play as a group and keep developing on that as we've been doing throughout this tournament."
Kane Williamson made a majestic 85 from only 48 balls after being dropped by Josh Hazlewood on 21 as New Zealand posted 172-4, after being put in by Aaron Finch in the trans-Tasman showdown at Dubai International Stadium on Sunday.
That was the joint-highest score in a T20 World Cup final, with Marlon Samuels having been 15 short of a hundred in West Indies' victory over England five years ago. It was also the fastest half-century ever scored in the final of the competition for a short time, until Marsh's heroics.
Williamson reached his fifty from 32 deliveries as Mitchell Starc endured a nightmare, the left-arm quick's four wicketless overs going for 60. The outstanding Hazlewood was the pick of the Australia bowlers with brilliant figures of 3-16.
Australia produced another magnificent run chase on the back of a stunning semi-final win over Pakistan, Warner and Marsh putting on 92 for the second wicket.
Warner made a superb 53 from 38 balls and Marsh was unbeaten on 77 from 50 deliveries as Australia were crowned champions with seven deliveries to spare.
Marsh raced away to his half-century, taking spinner Ish Sodhi (0-40 in three overs) apart as Trent Boult's brilliant figures of 2-18 were in vain.
All-rounder Marsh had not fully realised his potential in an injury-hit career but showed he can be a world-class performer on a historic Sunday night for Australia as New Zealand endured heartbreak in their first T20 World Cup final.
World-class Williamson the man for the big occasion
New Zealand were only 32-1 at the end of the powerplay, with Daryl Mitchell caught behind off Hazlewood, but Williamson shifted through the gears in a masterful innings with sweet timing and power.
The skipper was put down by Hazlewood in the deep in the 11th over from the expensive Starc before hitting Maxwell for back-to-back sixes to reach his half-century - the first of those with one hand coming off the bat as he hoisted the ball into the stand.
Martin Guptill (28) fell to star spinner Adam Zampa (1-26) after being dropped by Matthew Wade on 10, but the boundaries continued to flow for Williamson, who hit three sixes and 10 fours before holing out off Hazlewood.
Marsh and Warner make light work of run chase
Boult got an early breakthrough when he sent Finch on his way, but Warner and Marsh swung the game in Australia's favour with clean striking and great running between the wickets.
Marsh struck the first ball he faced from Adam Milne for six, while Warner looked increasingly ominous, taking a liking to the spin of Sodhi and hitting Jimmy Neesham for a huge six to reach a 34-ball half-century.
The excellent Boult returned to clean up Warner and the left-arm paceman dropped a tough chance to dismiss Marsh when Australia were almost home.
Glenn Maxwell (28 not out) struck Tim Southee for four to win it, with Marsh still unbeaten after striking four sixes and another six boundaries in a stunning innings.
England really needed a victory at the Gabba on Tuesday to stay in the hunt for a semi-final place and they rose to the occasion, with Buttler leading by example.
The captain top scored with 73 from 47 balls, becoming England's highest T20I run-scorer in his 100th match for his country in the shortest format after being dropped by Kane Williamson on eight and Daryl Mitchell when he had 40 to his name.
Buttler and Alex Hales (52 off 40) set England on their way to posting 179-6 in Brisbane and Group 1 leaders New Zealand fell short on 159-6 in reply.
The in-form Glenn Phillips (62 from 36) and captain Kane Williamson, who scored a run-a-ball 40, had given the Black Caps a good chance of sealing their place in the last four with a third-wicket stand of 91.
England were able to move up to second above Australia and Sri Lanka with a victory due to have a superior net run-rate, though, with Sam Curran (2-26) and Chris Woakes (2-33) the pick of the bowlers
A win over Sri Lanka at the SCG on Saturday should be enough for England to qualify, although third-placed Australia could significantly improve their net run-rate when they take on Afghanistan on Friday.
Wicketkeeper-batter Buttler said: "I think it's a big relief to be heading to that last game knowing we have a chance at progressing.
"So, yeah, we go there really excited. I think the team is in a really good place after tonight. It showed great character in a must-win match.
"We'll head to Sydney full of confidence and expecting a really tough game against Sri Lanka.
"There is a little bit of a benefit obviously playing that last game to know exactly what is required of us."
Captain Williamson doffed his cap to England after a first defeat of the tournament for New Zealand, who will be expected to seal a semi-final berth when they play Ireland in Adelaide on Friday.
"Credit to the way England played, they played beautifully, put us under pressure from the get-go and were clinical. It was a slightly above-par total," said the batter.
"We tried to take it deep, but credit to the way they bowled. It was a fair surface, we were in it in the second half but needed a few things to go our way. We tried to target certain areas of the ground and take it deep."
The Blacks Caps qualified for the last four as Group 1 winners, winning three matches and only suffering one defeat against England.
Beaten by Australia in the final in Dubai last year, the consistent Black Caps once again find themselves challenging for another trophy.
New Zealand have never won the T20 World Cup but have a great chance to put the heartbreak of the 2021 final behind them in Australia.
Trent Boult, Tim Southee, Mitchell Santner, Lockie Ferguson and Ish Sodhi have all shown their quality with the ball for the Black Caps.
Captain Williamson knows he is lucky to have such a strong attack.
He said: "They're experienced players for us. They've played for us a long time, whether that's taking wickets or, in particular, adjusting to conditions which certainly we need them to come to tournaments, world events, that's a big part of playing.
"So they've been outstanding throughout this tournament. And tomorrow we're at another venue against another opposition, and we'll have to make those adjustments again."
Pakistan sneaked into the semi-finals thanks to the Netherlands' shock defeat of South Africa after Babar Azam's side beat Bangladesh.
Williamson knows how dangerous Pakistan can be as they prepare for a showdown at the Sydney Cricket Ground, with the winners facing England or India.
"They've got an outstanding pace attack. They've been playing really good cricket. They've got very experienced players on their side, who are match-winners. So, that's a real strength for them," the batter said.
Pakistan beat New Zealand in a tri-series final last month and have won four of the past five matches between the two sides in the shortest format.
Afridi firing on all cylinders
Shaheen Shah Afridi has demonstrated why Pakistan were so eager for him to return to full fitness for this tournament after a spell out with a knee injury.
The left-arm paceman looked understandably rusty at the start of the Super 12 stage, but played a huge part in seeing Pakistan through by claiming 3-14 in a win over South Africa and 4-22 in the victory over the Tigers.
Afridi takes some stopping when he is at his hostile best and New Zealand's openers will need to try and see him off when he charges in with the new ball.
Babar due to show his brilliance
Pakistan have been able to count on captain Babar time and again with the bat, but he had not reached double figures before making 25 against Bangladesh.
The prolific skipper never tends to go long without a significant score and it would be no surprise if he delivers on the big stage in Sydney.
Run machine Babar averages an impressive 41.39 in T20Is, with a strike rate of 127.98.
The Black Caps beat India to win the inaugural World Test Championship in June and they will contest a third consecutive ICC final at Dubai International Stadium this weekend.
New Zealand had never reached a T20 World Cup final before defeating England with a magnificent run chase on Wednesday and captain Williamson is urging his side to rise to the occasion when they do battle with their trans-Tasman rivals.
He said in a press conference on Saturday: "It'd be some achievement [to do the double],
"But where it stands at the moment is there's a game of cricket to play and for us it's focusing on that and focusing on our cricket and looking to go out there and implement the things that are important to us.
"These sort of events are of focus in the calendar and it's a really exciting opportunity to be here now and looking forward to the match tomorrow."
Australia also chased down a big total to upset Pakistan and moved into their second World Cup final in the shortest format, having lost to England in 2010.
Skipper Aaron Finch says Australia always had the belief they could defy the odds and go all the way to the final.
He said: "It wasn't unexpected. We came here with a clear plan to try and win this tournament. We always felt that we have the depth and quality to do that.
"A lot of people had written us off from the start, so it has been really impressive the way we have gone about our business. Everyone has prepared really well and had match-defining performances at some point, the guys are up and about for tomorrow."
Conway blow hands Seifert unexpected chance
It was a memorable day for New Zealand when they knocked England out in midweek, but one of mixed emotions for Devon Conway.
The wicketkeeper-batsman made 46 before he was stumped giving Liam Livingstone the charge and he reacted by punching his bat, inflicting further pain on himself by breaking his hand.
Conway will miss the final as a result of that furious response to his dismissal, so Tim Seifert comes into the side.
Seifert has big shoes to fill, as Conway has been a revelation in his short international career so far. The left-hander scored 129 runs at an average of 32.25 in his first T20 World Cup.
Stand-in keeper Seifert made only eight in his only appearance of this tournament against Pakistan after coming in at seven in the order. He averages 24.24 in 33 T20I knocks.
Warner silencing the doubters
Questions were raised about David Warner's place in the Australia side ahead of the tournament after he was dropped by Sunrisers Hyderabad during the Indian Premier League.
The opener has shown his class in the United Arab Emirates, making 236 runs from six innings at an average of 47.20
Only Matthew Hayden (265 in 2007) and Shane Watson (249 in 2012) have scored more for Australia in a single edition of a T20 World Cup.
Warner’s 35 boundaries in the campaign (28 fours, 7 sixes) are the joint-most by any player in the tournament (level with Mohammad Rizwan and Jos Buttler).
Australia showed the strength of their batting line-up in a five-wicket win over a Pakistan side that had won every match to cruise into the last four, Matthew Wade blasting a brilliant 41 not out off 17 balls and Marcus Stoinis making an unbeaten 40 after Warner's rapid 49.
The Black Caps reached 222-3 at stumps on day one in Mount Maunganui on Saturday as Taylor (70) and captain Kane Williamson (94 not out) helped the Kiwis rebuild from 13-2.
Taylor's appearance brought up a notable personal milestone as he broke the record for most games for New Zealand in all formats with 438, overtaking Daniel Vettori, and the 36-year-old was given a standing ovation at the Bay Oval as he went to the crease.
He marked the landmark appearance in style, putting on 120 runs for the third wicket with Williamson before he fell to Shaheen Afridi (3-55).
"Every time you represent your country, it's a special moment," Taylor told a media conference.
"To represent them 400-odd times and to get the record, it's not what I play for, but it's nice to have got it and a special occasion.
"I got some nice words from BJ Watling and the team this morning and it felt a little bit like my 100th Test [he now has 104], going out to bat today with a standing ovation.
"I didn't hear what the ground announcer said, but he must have told the crowd, because I'm sure they wouldn't have known."
Taylor acknowledged that while New Zealand were in a good position leg-spinner Yasir (0-56) remains the danger man.
He added: "When Yasir Shah was bowling, we were on our toes. Quite often the spinners in New Zealand don't bowl much on day one or at all, so it shows what type of wicket it is.
"Obviously, we are happy with where we are at 222-3 and would have taken that at the start of the day.
"But it's how we turn up on Sunday and get through that first hour or two that really dictates how good a day this really was.
"Yasir Shah is a world-class bowler and even the way he bowled today, just trying to get through his overs, pick and choose his moments when he tried to attack.
"We've got a bit of luck and we're fortunate to get through that stage. But he's definitely going to play a big part tomorrow and whenever we bat again."
Shaheen claimed Pakistan's sloppiness in the field cost them as they put down key chances, including dropping Williamson when he was on 18.
"They batted hard but I am frustrated by the dropped catches. It's disappointing when you drop catches," he said.
"We did try to get wickets early on with new balls and took two wickets but if you don't take catches it will be difficult.
"It's a part of the game but if you need to win matches you have to take catches and have to improve the fielding.
"They know how to play in their conditions so it is tough, but the ball is still new and we will come hard to take wickets as early as possible."
Batting in the unusual position of four in the order, Warner made an unbeaten 47 off 33 balls as Sunrisers managed to get 17 runs off the final over to level the scores.
However, the left-hander was bowled at the start of the Super Over by the excellent Lockie Ferguson, who then cleaned up Abdul Samad two balls later.
Left needing just three to win off leg-spinner Rashid Khan, Kolkata captain Eoin Morgan combined with the man he recently replaced in the job, Dinesh Karthik, to complete the job, the pair having earlier made 34 and 29 not out respectively.
Shubman Gill top-scored with 36 as five of the Knight Riders' top six reached double figures, Andre Russell the only exception as they finished on 163-5.
The West Indies all-rounder then suffered an apparent hamstring injury in the field, though he returned to bowl the final over with Hyderabad needing 18.
They appeared on course to reach their target when the equation was reduced down to two from the final ball, but Warner had to settle for a tie as they scampered through for a leg bye.
WARNER JOINS ILLUSTRIOUS CLUB
Warner is the fourth batsman to reach 5,000 runs in the Twenty20 tournament, though the first overseas player to achieve the feat.
The Australian joins Virat Kohli, Rohit Sharma and Suresh Raina in the illustrious club. Worryingly, though, his Sunrisers team are on the slide as the season reaches a critical stage, this their fourth loss in five games. They are now four points behind fourth-placed Kolkata in the table.
LOCKIE THE KEY TO VICTORY
Playing his first game in this year's IPL, Lockie Ferguson showed the value of pace as he picked up five wickets in the match - including two in a Super Over for Hyderabad that did not last long.
He had also claimed 3-15 in the Sunrisers' innings, dismissing fellow New Zealander Kane Williamson, who replaced Warner as opener and, despite an obvious injury, made 29.
