Dortmund went into the final game with a two-point lead over the 10-time defending champions and knowing that victory at home to mid-table Mainz 05, or Bayern failing to beat Koln, would secure a first top-flight title since 2011-12.
However, anything less than victory would have opened the door for Bayern Munich due to Bayern's superior goal difference, and Dortmund suffered a disastrous first-half collapse which ultimately proved to be too big a mountain to climb.
There was remarkable late drama in both games, with Koln equalising against Bayern in the 80th minute before Jamal Musiala came off the bench to score what proved to be a 89th-minute title-winning goal, although Dortmund took it down to the wire with a 95th-minute equaliser in their match which left them needing one more goal with seconds remaining.
However, their 2-2 draw saw them finish level on points with Bayern but second on goal difference, with Bayern celebrating an unprecedented 11th successive title triumph despite one of their worst seasons in recent memory.
With the Westfalenstadion bathed in sunshine and the yellow wall in typically good voice, Dortmund were heavily fancied to end Bayern's decade of dominance ahead of kickoff, having moved above the perennial champions on the penultimate matchday.
However, a nightmare first half which saw them miss a penalty and concede twice, as well as Bayern taking the lead against Koln, ultimately proved too much for them to overcome as they became only the sixth team in Bundesliga history to surrender top spot on the final day.
For their part, Bayern knew that only a win would put them in contention for yet another title, and they applied the pressure early on through Kingsley Coman's thumping well-placed finish after only eight minutes of their game at Koln.
That goal would not have raised too much alarm in Dortmund initially, despite taking Bayern top on goal difference, but just seven minutes later Dortmund fell behind to leave them with a mountain to suddenly climb.
Andreas Hanche-Olsen gave Mainz the lead after 15 minutes of that match, and the Dortmund despair deepened shortly afterwards when they were awarded a penalty which Sebastien Haller - whose inspirational return from cancer to help fire BVB to the brink of the title had provided surely the story of the season - saw saved by Finn Dahmen.
Things got even worse for Edin Terzic's side five minutes after that too, with Karim Onisiwo squeezing his header over the line despite the best efforts of Gregor Kobel, who could only turn it against the inside of the post.
All of that meant that, after only 25 minutes of the final day, Dortmund needed three goals without reply as long as Bayern protected their lead against Koln.
A slither of good news finally arrived for BVB when Bayern saw a second goal chalked off by VAR just before half time for a handball in the build-up, but Dortmund still needed three goals of their own and the opening 15 minutes of the second half saw them fail to offer many signs of producing the comeback.
However, they then began to lay siege to the Mainz goal and finally made the breakthrough when Raphael Guerreiro exchanged passes with Giovanni Reyna before firing a low strike into the bottom corner from just inside the area.
Dortmund continued to knock on the door, creating chance after chance but somehow failing to grab a second, with stalwarts Marco Reus and Mats Hummels coming particularly agonisingly close.
Another unexpected twist was to come at the RheinEnergieStadion, though, as 10 minutes from the end of time in that match Koln were dramatically awarded a penalty which Dejan Ljubicic converted past Yann Sommer to suddenly send Dortmund back to the top of the pile.
News of that goal sparked scenes of celebration inside the Westfalenstadion, but those cheers were soon silenced when more news filtered through of a Bayern goal in the 89th minute.
Musiala was the title-winning hero for Bayern, coming off the bench just four minutes before firing the all-important goal into the bottom corner as Bayern ensured that they held up their end of the bargain in nail-biting fashion.
Dortmund were subsequently left needing two more goals in five minutes of injury time and, after Haller saw one ruled out for offside, Niklas Sule fire home an equaliser on the day right at the end of the allotted period.
However, it proved to be too little too late as the hosts could not find the most incredible of winners in the remaining seconds, leaving Dortmund distraught and Bayern celebrating a 33rd Bundesliga title.
At the other end of the table, Schalke 04 suffered relegation to 2.Bundesliga courtesy of their 4-2 defeat at RB Leipzig, while VfL Bochum's 3-0 triumph over 10-man Bayer Leverkusen lifted them out of the relegation playoff spot, which was instead filled by Stuttgart.