"This is a dream for me," a clearly delighted Djokovic said in an on-court interview after the match.
Federer struck the first blow, breaking in the fifth game of the first set, but his delight was short lived as Djokovic immediately broke back.
The Serb then began to pile on the pressure and capitalised on a series of forehand errors from the third seed to close it out.
The Swiss fought back at the start of the second, racing to a double break before the wheels started to come off his game.
Djokovic, who is chasing his fourth successive grand slam trophy, began to expose Federer's fragile serve, breaking in four of the next five games to see out the set.
With the momentum then firmly in his favour, Djokovic broke again in the sixth game of the third and closed out the match with a service winner.
Djokovic became only the fourth man in the professional era to reach four consecutive grand slam finals and will play Rafa Nadal on Sunday after the Spaniard destroyed compatriot David Ferrer in straight sets.
