American Tyson Gay clocked a new personal best of 9.71 second for the silver medal with Asafa Powell taking third in 9.84.
"I know I was ready," said Bolt who improved his previous 9.69secs world record. "I knew if I execute my race I would have this race."
World renowned coach Glen Mills made a promise to the world a few days ago that Usain Bolt was in shape to deliver something special at the World Championships and his prophecy came to pass.
Bolt’s start was the biggest concerns heading into these championships, but as he progressed through the rounds, his block work slowly began to vanish.
The world was awaiting such a showdown between Bolt and American Tyson Gay and the Jamaican, who from the start said he would not be beaten delivered once again, just like he did at the Beijing Olympics last summer.
He won in a world record there and he repeated that performance to win by a handsome margin over Gay.
"He is phenomenal," Gay said. "I am happy, disappointed at not winning, but it took a world record to beat me.
"I ran a personal best and I am happy with that."
Bolt came into the race as the second fastest this season with a time of 9.79 behind Gay’s 9.77, but quickly showed he was just waiting on his time to land something big.
The Jamaican, who took the Beijing Olympics by storm last summer, winning three sprint golds all in world record times, had overcome a nervy semi-final in which he false started for the first-ever time.
Antigua and Barbuda’s Daniel Bailey, who trains with Bolt at the Racers Track Club in Kingston, was fourth in 9.94.