Led by inspirational player-of-the-tournament Alex Badolato and inspired at the death by the goalkeeping of Steven Hall, the national team, made up largely of teenagers, became the first Australian side to lift the continent's junior crown in the tournament's 66-year history.
Coach Trevor Morgan's side were probably the superior team over an engrossing two hours in Shenzhen's Baoan Sports Centre on Saturday night, but had to settle for a 1-1 draw over the 90 minutes before extra-time couldn't separate the sides.
In the shootout, though, the Australian teens kept their nerve best converting all their five spot kicks confidently before Hall proved their hero of the hour, saving the last of the Saudi Arabian penalties from a crestfallen Bassam Hazazi to seal a 5-4 win.
Amid ecstatic scenes of celebration, it meant the Young Socceroos become the first Australia team to win a major tournament since Ange Postecoglou guided the senior men's outfit to the 2015 Asian Cup title.
It put the seal on a remarkable tournament for the Australian youngsters, most of whom play in the A-League Men, as they won all six of their matches, scoring 16 goals, while also booking a place in the Under-20 World Cup later in Chile later this year.
For Hall, once the youngest goalie ever to appear in the A-League Men who only turned 20 in January, it was a special night which had looked, initially, as if it might prove a heartbreaking one as he was culpable for the Saudis' equaliser in first-half stoppage time.
With the Young Socceroos leading 1-0 through Louis Agosti's 24th minute volley, the Saudis levelled when Talal Haji's rocket header was bulleted straight at Hall, who had already retreated behind his own goalline when he made the save.
Hall looked a picture of misery when, after a lengthy deliberation by VAR, it was ruled the keeper who's now plying his trade with Brighton in the Premier League had made the stop behind the line.
But it was Hall's only blemish as he made a couple of key saves even before he went low to his right and stuck up his left-hand instinctively to thwart Hazazi in the shootout and send his teammates into delirium.
Australia's Italy-based captain Sebastian Esposito reckoned the setback just before the break never unsettled his side.
"We were very confident, we know how good we are, we've had belief in this group for two years," he said.
"It's unbelievable, and we can't wait to lift the trophy and go on to the World Cup. We're ready for the World Cup, we're ready for anything!"
Coach Morgan had hoped his players would enjoy being in the "shop window" for their continental triumph, and there were several stand-outs, like Danish-based Musa Toure, QPR's exciting winger Daniel Bennie and the outstanding Melbourne City midfielder, Badolato, who caught the eye.
The 20-year-old Badolato was voted the tournament's MVP for a series of influential displays, headed by his brilliant goal in the quarter-final win over Iraq.
