Victoria Azarenka had a slow start to Saturday's final, dropping serve in the opening game.
Maria Sharapova pounced on the opportunity, holding serve to consolidate the break and lead 2-0.
Maria Sharapova led 30-0 in the third game but let the game slip. It may have been very costly.
Victoria Azarenka would get the break back and from 3-all would take it to a whole new level.
Maria Sharapova searched for answers as Victoria Azarenka wasn't giving a single game away.
Victoria Azarenka dropped to the court after winning nine straight games for a 63 60 victory.
Victoria Azarenka met Maria Sharapova at the net after beating her for the Australian Open title.
Martina Hingis, a three-time winner here, lost to Victoria Azarenka in her last Slam in 2007.
Victoria Azarenka thanked the fans during the post-match trophy ceremony on Saturday night.
Victoria Azarenka, who was born in Minsk, is the first Belarusian ever to win a Grand Slam title.
By virtue of the victory, Victoria Azarenka will be the new World No.1 on Monday's rankings.
Victoria Azarenka, who was No.3, will become the first player ever to skip No.2 en route to No.1.
Victoria Azarenka also took a 4-3 head-to-head lead against Maria Sharapova after the victory.
The only other Belarusian to reach a Grand Slam final was Natasha Zvereva at the 1988 French Open.
Victoria Azarenka has held an Australian Open trophy before - the junior trophy back in 2005.