Les Bleus, who won at Russia 2018, were second best for large parts of the semi-final, but still managed to win 2-0 thanks to goals from Theo Hernandez and Randal Kolo Muani.
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Didier Deschamps' side looked to be on course for an emphatic victory after Hernandez fired his half volley into the near post just five minutes into the game.
But Morocco showed why they have beaten Belgium, Spain and Portugal in Qatar as they took the game to France straight after.
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With their defensive tactics thrown out the window, the Atlas Lions went all out in search of an equaliser from the moment they fell behind.
They had received a blow in the warm-up after Nayef Aguerd was taken out of the line-up with injury.
And Romain Saiss was then taken off in the 20th minute due to injury, but still Morocco bravely went on the assault.
They came inches away from levelling in spectacular fashion through Jawad El Yamiq's overhead kick which cannoned off the post.
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The second half saw Morocco continue to control the game, with Kylian Mbappe failing to impose himself.
But he finally made his mark in the 79th minute where he jinked inside the box, with his deflected shot finding it's way to substitute Muani.
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Just moments after coming on, Muani had the simplest task of tapping home into an empty net much to the relief of Deschamps and his side.
Speaking on commentary of the strike, Stuart Pearce said: "If ever a team did not deserve a goal, it was the French."
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But just as champions do, France scored when they needed it the most, as they saw out the rest of the game to advance into Sunday's final.
Lionel Messi and Argentina now stand in their way of becoming the first country since Brazil in 1962 to defend the World Cup.
As for Morocco, they will now meet Croatia in the third place play-off on Saturday.
Pearce wasn't impressed by France's display, as he remarked: "These are supposed to be world class players and not one of those France players took the game by the scruff of the neck, I'm shocked."
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Adrian Durham shared the same view, as he stated: "France won the match, Morocco won the hearts, and the France players know they've got away with one."
Before adding: "France are very, very fortunate, they were awful, truly a mess.
"There was a stench from the French, and it didn't have the smell of World Cup winners."