Manchester United became kings of Europe for the third time on a night of high drama and emotion in Moscow.
Goalkeeper Edwin van der Sar was the hero with a penalty save to deny Nicolas Anelka after Chelsea captain John Terry had missed the chance to win the Blues the trophy by firing his own spot-kick hit the post.
The dramatic shootout looked to be going Chelsea's way after Petr Cech saved Cristiano Ronaldo's effort but Terry's miss opened the door for Sir Alex Ferguson to clinch his second Champions League crown.
As the celebrations began, you could have expected the ghosts of such giants as Duncan Edwards and George Best to be dancing with delight at the outcome.
It is 40 years since United first won the trophy with a team rebuilt by Sir Matt Busby from the survivors of that Munich disaster. Eight players lost their lives following the catastrophic events on a snow-filled German runway in February 1958.
It was fitting that United became the first English club to win the trophy 10 years later and even more apt that, half a century on, Ferguson's men had again taken on Europe's finest and beaten them all.
Their achievement was made even more poignant by Munich survivors Harry Gregg, Albert Scanlon, Kenny Morgans, Bill Foulkes and Sir Bobby Charlton, now a club director, who watched the drama unfold from the stands.
But modern-day football has its own heroes and the likes of Carlos Tevez, Wayne Rooney and the unstoppable Ronaldo now trip off the tongue in the same way Best and Charlton once did.
Yet, the opening 25 minutes of the first all-English final barely lived up to its hysterical pre-match hype.
However, all that changed from the moment Ronaldo headed United in front with his 42nd goal of a memorable season.
Paul Scholes, who missed United's last triumph through suspension in 1999, played a delightful interchange of passes with Wes Brown on the right flank.
His final return pass put Brown in the clear and the full-back's left-foot cross found the waiting Ronaldo in space at the far post.
The Portugal international planted a firm header into the corner of the net past a static Cech to give United first blood.
The Blues began to grow in confidence as the first half approached its climax and in the 45th minute, they took advantage of a massive slice of luck to level the score.
Michael Essien's attempted shot from 25-yards took two deflections on its way towards goal but the most telling was off the back of United captain Ferdinand.
It changed the direction of the ball into the path of Lampard, who duly supplied the finish from six yards.
It was all Chelsea now but they could not force a second goal. Drogba sent a header a wide from Lampard's corner and Ballack was just off target with a 25-yard drive.
In the 77th minute, United had the woodwork to thank when Drogba sent a 20-yard shot against Van der Sar's left-hand upright.
Ryan Giggs was introduced in place of Scholes seconds later for the Welshman to make a record 759th appearance for the Red Devils.
The game went into extra-time, and within three minutes of the restart, the woodwork came to United's rescue again.
This time it was Lampard who sent his shot crashing against the crossbar as United continued to ride their luck.
But Chelsea were almost made to pay dearly eight minutes later when Terry cleared a goalbound effort from Giggs off his own line.
Drogba was then sensationally sent off for slapping Nemanja Vidic as tempers flared on both sides.
But the lottery of penalties ensured that United clinched the trophy.
Manchester United manager Sir Alex Ferguson hailed his side's "fantastic achievement".
"That's the first penalty shoot-out I've ever won," Ferguson told Sky Sports after claiming the crown for the second time.
"When we missed the penalty kick (from Ronaldo) we thought we were in trouble but I thought we deserved the win.
"We had the best chances. In the second half they had more control but in extra time we were better.
"It's a fantastic achievement."
Chelsea boss Avram Grant vowed that his side would return to the biggest stage after their disappointment.
"What can I say? We dominated the game, we hit the post two times and then we lost on penalties," the Blues boss told Sky Sports.
"JT is the main reason we are here. We had a difficult time and he is part of the team. The team play excellently and I am very proud.
"He was great all season, he was great in the semi-final and this game.
"He is the reason they didn't create any chances - I feel sorry for him and the team."
Grant, whose future at Stamford Bridge remains unclear, promised Blues fans his team would be back.
"It's not the last time you will see Chelsea in the final," the Israeli vowed.
"You will see us back and we will win the final."
