Taylor tossed his putter into the air and jumped into the arms of his caddie after the longest made putt of his PGA Tour career, and fellow Canadian players Mike Weir, Corey Conners and Adam Hadwin were among those who ran out to the green to congratulate him.
"I'm speechless. This is for all the guys that are here. This is for my family at home," Taylor said with tears in his eyes. "This is the most incredible feeling."
The last player from Canada to win the Canadian Open was Pat Fletcher in 1954 at Point Grey in Vancouver. Fletcher was born in England; Carl Keffer had been the only Canadian-born champion, winning in 1909 and 1914.
With galleries cheering his every move and even serenading him with "O Canada" on one tee box, Taylor curled in an 11-foot birdie putt on the 18th hole to finish at 17-under 271 at Oakdale in Toronto, walking backwards with his fist raised as the ball dropped into the cup.
He shot a six-under 66 on Sunday but classy Englishman Fleetwood forced the playoff when he came in with a 67.
The players traded birdies on their first time playing No.18 in the playoff. They both parred 18 and the par-3 ninth before heading back to 18.
Taylor reached the green in two while Fleetwood laid up after his drive found a fairway bunker. Fleetwood gave himself an opportunity for birdie but didn't need to putt after Taylor's uphill eagle putt from the front of the green hit the flagstick and dropped.
The 35-year-old Taylor, who was born in Winnipeg, Manitoba, and grew up in Abbotsford, British Columbia, won for the third time on the PGA Tour.
He shot 75 in Thursday's opening round but rallied with a 67 on Friday to make the cut, then shot 63 on Saturday to begin the final round three shots behind leader C.T. Pan.
Two-time defending champion Rory McIlroy, two shots back of Pan entering the final round, closed with a 72 and finished in a tie for ninth, five shots back.
Fleetwood, a two-time Ryder Cup player from England and a six-time winner on the European tour, remains winless on the PGA Tour.
Tyrrell Hatton (64), Aaron Rai (69) and Pan (70) finished one shot out of the playoff.
Australian rookie Harrison Endycott capped his impressive week with a closing 68 to tie for 12th at 11 under.
