They will meet Canada in the final on Thursday morning (NZtime).
Canada beat South Africa 2-1 in another match this morning to top their group.
Needing a victory to remain a chance to heading the group A standings, New Zealand raced to a fourth-minute lead through striker Amber Hearn who later added her fourth goal of the tournament in the 36th minute shortly after fullback Anna Green had extended the Kiwis' lead.
Green laid on the first goal for Hearn after sustained possession opened a gap behind the Scottish defence.
New Zealand's second goal came when Green cut inside and backed herself to score from outside the area.
Hearn, the tournament's leading scorer, turned her marker on the edge of the box and placed her shot into the top right corner for her second goal.
New Zealand could not add to their lead in the second half and then waited on tenterhooks for updates from Nicosia as the Netherlands, who would've had the edge over New Zealand on goal difference or goals scored if they won the day's final game, were held to 1-1 draw by the group's top seed, Italy.
The final will be the first for the Football Ferns outside Oceania since 1975.
"It's exciting times," New Zealand coach John Herdman said.
"There's a group of pretty happy players back there. They set an internal goal of making the final quite a few weeks ago and to achieve it is down to a lot of hard work.
"The losses against Australia a fortnight ago were a wakeup call and a reminder about the realities of international football but they've turned it around and delivered three great results on the bounce."
The last two meetings between New Zealand and the world No 12 Canadians have finished in 1-1 draws and Herdman is expecting another close match in the final.
"They've scalped the English over here and they've got players such as Christine Sinclair who can cause us problems, but I think it'll come down to who wants it more.
"This is quite a hungry New Zealand team, and all that desire and passion will be needed to swing it our way."
In another Group B match, Switzerland drew 2-2 against defending champions England to pip the English to second place in the group.
The Swiss will play the Netherlands for third place overall while England will match up against Italy in a fifth place playoff. Scotland meet South Africa to avoid the wooden spoon.
