Behind a mix of aggressive groundstrokes and consistent defense, the Serb also took set three in a tiebreak and went ahead in set four 5-2.
Federer held serve then broke serve to reach 5-4 but then with Djokovic serving for the match, the Swiss found himself only two points from defeat at 30 all.
A netted Federer backhand crosscourt gave Djokovic match point. However a 105 miles per hour ace down the tee from Federer level the score at deuce. The Swiss would strike another ace down the tee at 122 miles per hour before holding serve to reach 5 all.
After breaking serve then holding his next service game, Federer would complete a run of winning five games in a row to enter a decisive fifth set.
The final set remained on serve with no breaks of serve as Federer served to stay in the match at 4-5. An unfortunate start however sent the Swiss down 0-30 as he would net a crosscourt slice backhand then frame a crosscourt backhand long.
Federer drew to 15-30 as Djokovic struck a crosscourt forehand wide.
The Swiss netted his first serve. Djokovic struck a powerful forehand crosscourt which resulted in a Federer forehand down the line hit long to set up match point at 15-40.
Federerís final first serve hit the net before landing long. The Swiss then netted a crosscourt backhand to end the match after 3 hours and 56 minutes of play.
For Djokovic, it was his second Wimbledon title and seventh overall grand slam title and also marked his return to the top of the ATP Tour singles rankings.
Meanwhile Federer at 73 Wimbledon singles matches won is just shy of the American Jimmy Connorís record of 84.
Among active grand slam winners, Federer leads with 17 grand slam titles; followed by Rafael Nadal of Spain with 14 then Djokovic with seven.