Muscat's charges were a point ahead of rivals Shanghai Shenhua ahead the final round games, and needed to beat sixth-placed Tianjin to win the league.
Port did just that, with first-half goals to Leo Cittadini and Matias Vargas in the fourth and 34th minutes setting up a title-winning 5-0 victory.
Muscat's charges won the league by three points from Shenhua, who drew 1-1 with Chengdu Rongcheng.
Incredibly, Port scored 96 goals across their 30 league games, while conceding just 30, with star striker Wu Lei notching 32 in 30 appearances, including a brace on Saturday night.
In the process, Muscat, who joined from Yokohama F. Marinos last December, added another trophy to his growing resume - and that of assistants Ross Aloisi and Vincenzo Ierardo - and further highlighted his name to potential suitors.
History made! 🚨 — Sacha Pisani (@Sachk0) Kevin Muscat becomes the first Australian coach to win league titles in Australia, Japan & China.He guided Shanghai Port to back-to-back #CSL titles for the first time in their history.His 7th title as a coach.Also through to Chinese FA Cup final. pic.twitter.com/UbP1FBcIA9November 2, 2024
It is the latest impressive step in Muscat's coaching tenure after a playing career where he made his name as a hard-nosed, aggressive defender.
After finishing his playing days at Melbourne Victory, the Melburnian started his coaching career as Ange Postecoglou's assistant at the same club.
He grabbed the reins after Postecoglou took the Socceroos job and carved out a coaching legacy at Victory, winning two A-League grand finals, a premiership and an FFA Cup before quitting in May 2019.
After a short, ill-fated stint at Belgian club Sint-Truiden in 2020, Muscat was appointed manager of Marinos in July 2021, replacing now-Tottenham boss Postecoglou.
Muscat finished second in his first year at the helm, then won the league in 2022, before departing last December to make the switch to China.
He will now turn his focus solely to Shanghai's Asian Champions League campaign, which continues with Tuesday's game against Japanese club Kawasaki Frontale, while overseas offers appear certain to come.
It is understood Muscat, 51, was sounded out for the Socceroos head coach role, but was focused on his club football, before Tony Popovic was ultimately appointed.
Scottish club Rangers have been consistently linked to a move for Muscat, their former defender.