Hannah Wilkinson made the record breaking Eden Park roar with a first half goal that proved to be the winner.
The tournament hosts had the chance to double their lead in the dying minutes of the game from the penalty spot after a handball was reviewed by VAR, too.
However Ria Percival's effort could only rattle the crossbar, leaving New Zealand's wait to score from the spot at a World Cup to continue.
It's the first time the Football Ferns have won a World Cup game after 16 attempts.
It's no surprise then that as the final whistle blew - ten minutes into stoppage time - there was pandemonium as players celebrated, while a few tears were also shed.
READ MORE WORLD CUP
Barca star Walsh is key for Lionesses and Chelsea star could be breakout name at World Cup
All you need to know about the 2023 Women's World Cup as England eye glory down under
New Zealand made history in two other ways, first by breaking the record for the biggest football crowd in the country with an audience of 42,137.
It also saw a referee announce a VAR decision through a mic live to the stadium.