Stuart Broad's stunning spell of bowling in the evening session on day four in Durham ensured England won the Ashes outright as Australia collapsed in quite spectacular fashion.
Australia openers Chris Rogers and David Warner had shared 109 for the first wicket in pursuit of 299 for their first victory of the series, but Broad's 6-50 led England to glorious a triumph as the tourists were dismissed 75 runs short of their target.
Ian Bell was ousted by Australia early on the fourth day to provide Michael Clarke's side with hope they could force a successful result, but Tim Bresnan and Graeme Swann ensured England edged towards a seemingly competitive total.
Australia, though, appeared to be making light work of the chase as Rogers and Warner brought up their century stand inside 30 overs, before the former was caught by Jonathan Trott off the bowling of Swann.
They were, however, still firmly in control at the tea interval at 120/1 and England faced a mountain to climb if they were to win the series after reaching an unassailable position last week following the draw in Manchester.
Usman Khawaja fell to Swann having reached 21 before Warner was undone by a beauty from Bresnan when he appeared to edging towards a potentially match-winning century.
Bresnan's ripper was soon trumped by a Broad delivery that clipped Michael Clarke's off-stump - prompting rapturous celebrations - before Steven Smith played on to the same bowler in his following over.
Shane Watson was trapped in front yet again six balls later courtesy of a Bresnan delivery, while Haddin was also dismissed lbw by Broad having unsuccessfully attempted to overturn the decision on review.
Haddin's departure meant Australia had lost six of their top seven batsmen for only 34 runs after the tea interval, and seemingly extinguished any hopes of a win for the tourists.
Ryan Harris was Broad's fifth victim - and his tenth in the match - before the England opener was withdrawn from the attack as the Riverside became surrounded by darkness.
A break in the clouds ensured Broad was given the ball once again, and it took only three deliveries before Peter Siddle lifted to James Anderson at mid-off to crown an incredible win.
Broad finished figures of 11-121 and the man-of-the-match award, and England travel to The Oval for the final Test match with the Ashes deservedly still in their grasp.