The Hatters have not played in the top flight of English football since 1992 but are now just one win away from the big time.
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Sunderland held a 2-1 aggregate lead from the first leg heading into the clash at Kenilworth Road, however, Luton came out on top on Tuesday night and have booked themselves a trip to Wembley.
Gabriel Osho opened the scoring for Rob Edwards' side as he netted from close range inside the first ten minutes.
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Soon after, Sunderland had huge claims for a penalty as the ball appeared to come off the arm of Amari'i Bell inside the box. However, referee Simon Hooper did not award a spot-kick and with no VAR in use in the semi-finals, the decision was not reviewed.
Luton may certainly have got away with one and as half time approached, they doubled their advantage.
Tom Lockyer rose highest and nodded in with a strong header past Anthony Patterson in the Sunderland net.
Despite their endeavour and efforts, the visitors' second half performance was not enough for them to find a response.
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Luton held on to claim the all-important 2-0 win, going through 3-2 on aggregate, sealing their first win in an EFL play-off match at the fifth attempt.
The Hatters have already improved on last season's effort, having lost in the final four to eventual runners-up Huddersfield.
However, 2023 could very well be the year that Luton make their way into the Premier League for the very first time.
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Stars including Erling Haaland, Mohamed Salah and Marcus Rashford could feature at Kenilworth Road in the 2023/24 campaign, a ground that many love for its whacky away end.
Luton will face either Coventry City or Middlesbrough in the showpiece match at Wembley on May 27.