Arturo Vidal, Charles Aranguiz and Alexis Sanchez all converted for Chile, and Cristiano Ronaldo never even got an opportunity at his spot kick.
Chile defeated Portugal on penalties (3-0) at Kazan Arena in the semi-final match.
The result was justice for Chile after they hit the woodwork with two successive shots in the dying seconds of extra time.
Neither had won a major trophy until 2015 but Chile now has two Copa Americas, while Portugal became European champion previous year. Cristiano Ronaldo was off-form for Portugal and Chile gradually took control in front of 40,855 fans at Kazan Arena, majority behind Chile.More news: Increased West Nile risk in Saskatchewan
Chile now await the victor of the second semi-final between Germany and Mexico; who clash on Thursday. The Manchester City man saved Ricardo Quaresma, Joao Moutinho and Nani's penalties to see La Roja advance to a first-ever Federation Internationale de Football Association final.
"They have already won the Copa America and been doing well in the Confederations Cup but I think we are ready to play a good game and achieve our goal of being in the final next Sunday".
Chile appeared to be denied a clear penalty when Francisco Silva was seemingly tripped by Portugal's Jose Fonte.
There was no let up in the pace as Portugal's Andre Gomes went close while Sanchez headed Mauricio Isla's cross from the left just wide of the post.
Ronaldo saw more of the ball than Sanchez, but neither of them stamped their authority on the game which had few chances at goal.
The playing XI for both the teams will be updated soon. - Three of Chile's four goals at these finals have come after half-time.