Yabusele, who plays his domestic basketball with Real Madrid in Spain, top scored with 17 points to lead the hosts, who were silver medallists in Tokyo three years ago, to another final.
Isaia Cordinier added 16 points to France's total, while San Antonio Spurs star and NBA Rookie of the Year Victor Wembanyama had 11 points and seven rebounds.
Dennis Schroder led for Germany with 18 points, with Fritz Wagner the only other player to reach double figures against the Olympic hosts.
Germany's loss brought an end to their incredible recent run stretching back to last year's World Cup, having won 12 consecutive games in major international competitions.
France will now face either the United States or Serbia in Saturday's final, with LeBron James and company hoping to win Team USA's 17th gold in men's basketball.
Canada were unbeaten coming into this game after a strong showing in the competition so far, but had no answers against the hosts and their raucous home support.
Canada's game plan limited Victor Wembanyama to a supporting role as he scored just seven points, but that allowed Guerschon Yabusele and Isaia Cordinier to shine as they scored 22 and 20 points respectively.
France made a strong start, storming into a 19-point lead at the start of the second half, though Canada clawed themselves back to within five points with only four minutes remaining - Shai Gilgeous-Alexander led them with 27 points.
The comeback soon stalled though, as Evan Fournier put together seven quick points to send France cruising into the next round as they aim to better their silver medal from the Tokyo Olympics.
They will face Germany for a chance to play in the gold-medal match, while Canada have now failed to make it to the final four at the Olympics since 1984.
