The young team of Dylan Kennett, Pieter Bulling, Alex Frame and Regan Gough managed 03:53.915, to edge out Great Britain who clocked in at 03:54.088.
New Zealand enjoyed a strong start and held their advantage throughout before both teams lost a rider inside the final 750m. Great Britain applied tremendous pressure in the closing stages but New Zealand held on for victory.
Meanwhile, Australia claimed the bronze with a stunning win over Germany.
A victorious Kennett spoke of the team's immense satisfaction in beating two of New Zealand's traditional rivals.
"Beating Great Britain in the final is the stuff you dream of after watching them have so much success," Kennett said.
"They're the Olympic champions the last two Olympics. Having the Aussies on the third step is a pretty special feeling to have beaten those two teams."
Bulling echoed those sentiments but spoke proudly of two Oceania teams claiming medal wins.
"It's always good, with the Kiwis and the Aussies there's always that rivalry," Bulling said. "We do respect each other's team and it's good to see us both on the podium."
Ryan, who sat out the final, said the atmosphere in the arena was something special.
"It's always good. I was in France back in Bordeaux when the World's were there. It was a massive crowd there and it was a big vocal crowd here, it's awesome."
Earlier, the Kiwis registered a superb 3:56.198 to beat off the challenge from Switzerland and qualify for the final, while Great Britain accounted for Canada, going 3:55.207 to set up a fight for gold.
New Zealand's Eddie Dawkins also picked up a silver in the night session, finishing behind Frenchman Francois Pervis in the men's keiren final.
New Zealand are third on the medal table with one gold and two silver.
In the women, the New Zealand team of Rushlee Buchanan, Lauren Ellis, Jaime Nielsen and Georgia Williams lost their ride-off for the bronze medal against Canada.
Earlier in qualifying they clocked another best time of 4:22.954 in losing their first round match up against top ranked Australia (4:17.410). Australia then broke the world record in winning the gold medal ride against Britain.
NZH
