Serving at deuce, Nadal faced breakpoint after Djokovic struck an inside out crosscourt forehand winner.
Nadal then hit an ace down the tee to return the score to deuce.
However Djokovic powered through to break serve and end the 11 minutes long game to lead 4-3.
On the changeover, the crowd which throughout the day had been enjoying a courtside ocean view, stood up to do an impromptu wave.
But Nadal failed to raise his level of play to that of Djokovic’s as on the run he sent a crosscourt forehand long to trail 15-0.
The Spaniard then hit a down the line backhand lob long to trail 30-0.
Djokovic’s only ace of the match, struck out wide, put him ahead 40-0.
A netted down the line forehand from Djokovic put the score at 40-15.
Nadal then netted a down the line forehand as Djokovic held serve to lead 5-3.
Serving to stay in the match, Nadal hit a down the line forehand volley winner to lead 15-0.
However after reach deuce, Djokovic struck a down the line forehand return winner to set up match point.
The world number one Djokovic pounded a crosscourt backhand winner to end the match.
In the Sunday’s final Djokovic defeated the eighth ranked Tomas Berdych of the Czech Republic 7-5, 4-6, 6-3.