Murray has now established himself as major contender for the 2012 US Open and looks to move his career forward for the elusive Grand Slam victory.
The following is a recap and transcript of the key plays as it unfolded in this match.
Lots of trouble for Murray in the first game. He saves, but is it a sign of shakiness or will it give him confidence?
Federer's backhand will be on trial again. He ripped a nice winner early on but has been loose with a few others. And so it goes.
Federer serving his way out of trouble in the fourth game after a Murray break-point chance.
Murray up 3-2 and the match is on serve.
Murray hits a huge running forehand from his deuce corner and up the line for a 0-30 chance.
Murray blows a 0-30 pass and Federer wins the next two points.
Federer double faults, but then a see-saw of deuces occurs. Murray then wins a second break point when Federer shanks a backhand into the net. Murray now up 4-2.
It’s now 5-2 Murray after a pair of aces following deuce. Murray yanked a couple of good forehands.
Murray is breathing hard, but he often looks tired. He has a definite look of intensity.
Federer is now looking to come in behind his shots here and there. He has been sloppy on a couple and faces set point.
A backhand up the line by Murray, and the set is his.
Murray controlled the last three games and won the first set 6-2. Fed looking a bit listless.
Federer’s footwork is slow on the second point of the second set. He didn't set his feet enough on an easy ball and hit off his back foot and misfired on the shot.
"Federer is pressing right now," said NBC color commentator John McEnroe.
Federer missed a sitter at net and flew a forehand.
Net cord for Murray and suddenly it’s 0-40 for Murray.
Murray gets the break two points later on a sheer hustle play for a pass at net.
"Dominating and incredible," McEnroe says as Murray goes up 2-0.
Charmed? Murray saves a breaker with amazing hands off a Federer scorcher.
Federer sets up a third breaker with a great get-and-pass. But Murray sends it deep to Federer's corner, and Federer can't do anything with it except hit it into the net. It’s tougher these days for Federer to get to balls with pace near the lines.
Fourth breaker this game for Federer, but body serve and service winner for Murray.
Fifth breaker in this game for Federer, and Murray survives the rally after Federer airs it deep.
Sixth breaker, and there is more life in Federer. He is hitting his forehand with increased pace and is getting "the look." But then he hits another running deuce corner forehand into net.
"There are more bad hops on grass and especially the baseline at Olympics than Wimbledon," says McEnroe.
Murray hits incredible running backhand winner having to bend and dig deep. Federer sends another backhand long, and Murray holds for a huge save. It’s 3-0 Murray in the second set.
After 6-2, 3-0 we see the statistic for second serve points won. Murray is at 54 percent, but Federer is at a woeful 35 percent.
Federer double-faults, and at 4-0 second set, it's looking ugly. Fed is completely off, and Murray is having his way.
We need to see if Murray has the killer mentality to close the deal.
Can Federer turn it around? The second set is about gone, but he needs to establish some rhythm and figure out what to do for the third.
Now it's 5-0. Just hoping Fed can make it a match at this point.
Murray has a backhand stab-and-pass that causes him to tumble and roll, but he still faces break point as Federer makes a mini-comeback.
Murray holds on and closes out the second set 6-1. It will take an epic comeback from Federer.
It's the third set, and Federer comes out serving strong to go up 1-0.
Juan Martin del Potro finished off Novak Djokoivc for the bronze. Big moment for the Argentine after a tough semifinal loss to Federer.
Murray looking for blood at 2-2 and 15-40 in the third set.
Murray steps into the backhand and overpowers Federer for the break and a 3-2 lead. Is the match over?
"This is the first time in awhile that Federer looks his age. It's like a bad dream for Federer. He just can't get anything going," McEnroe says.
It’s an easy hold at love, capped by an awesome passing shot with serious angle. Murray is in complete control and is even overpowering Federer on several points.
“In some ways Federer continues to hand it to him on a silver platter. He is simply not making shots,” McEnroe says.
Murray rolling again on serve and closes it out on love for a 5-3 lead. He is simply dominating.
Murray looks to serve out the match. After an ace, he has two set points at 40-15.
It’s an ace! He drops down, puts his face in his hands for only a moment and goes to shake Federer’s hand.
Andy Murray is the gold-medal champion.