Goals from Ella Toone, Lauren Hemp and Alessia Russo were enough to see the Lionesses defeat co-hosts Australia 3-1.
Sarina Wiegman's side are now just one win against Spain away from World Cup glory.
The opening 45 minutes of the match saw England emerge as the more dominant side and their efforts paid off before the break.
Russo's pass found Toone in the area and she rifled her shot in to the top-right corner.
Australia goalkeeper Mackenzie Arnold had no chance of saving it as England went into half-time with a deserved lead.
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Chelsea star Sam Kerr put the Matildas back on level terms just after the hour mark though thanks to a sublime goal from range.
However, England fought back and restored their lead just minutes later courtesy of Hemp's finish inside the box.
The goal set up a nervy finish for Wiegman and co. as they closed in on their first ever final in the competition.
Mary Earps performed heroics in goal once again as she pulled off a strong save to deny Cortnee Vine in the final ten minutes.
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But it was Russo who made it game, set and match just minutes before full-time with a low finish on the counter-attack.
Australia, who were also trying to reach a first World Cup final, put up a good fight on home turf in front of 75,000 but they will now face Sweden in the third place play-off.
England were jubilant at the full-time whistle following a hard-fought contest at the Stadium Australia in Sydney, with Australia fans and players in tears.
Their last appearance at the World Cup in 2019 ended in semi-final heartbreak against the USA.
However, they will now have the chance to get their hands on the trophy themselves with Spain standing between them and glory.
Victory will see them claim their third major honour following Euro 2022 success and their Finalissima win over Brazil in April.
Football could therefore well and truly come home once again in a matter of days as the Lionesses march on towards the final.