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A repeat performance was not meant to be, as Clijsters was wide on match point to end any chance at becoming the eighth woman to repeat as Aussie champion.
Azarenka is 3-3 in her career against Sharapova, with two of those wins coming in finals.
After that battle, Sharapova downed second-seeded Petra Kvitova 6-2, 3-6, 6-4 to avenge her loss to the Czech in last year's Wimbledon finale.
The 21-year-old Kvitova missed wildly on an overhead smash to lose her second service game, the first of three breaks for Sharapova in the opening set.
"In the third set, I felt she always had the advantage because I was always down on my serve," said Sharapova, who piled up five double faults in the third set and 10 in the match. "I just told myself "You just gotta go for it, don't let her finish off the points like she likes to."'
The 22-year-old Azarenka, meanwhile, became the first Belarusian woman to reach a Grand Slam final since Natasha Zvereva was the runner-up at Roland Garros in 1988 when she was representing the Soviet Union.
In doing so, Azarenka ended another memorable performance Down Under by Clijsters, who has stated she will retire after the Summer Olympics in London.
Azarenka held serve with relative ease the rest of the opening set to stay in the driver's seat, but Clijsters began her comeback by breaking at love on Azarenka's first service game in the second.
But Azarenka, riding a 10-match winning streak after winning in Sydney earlier this month, earned her fourth break of the match to serve for a spot in the final.
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