A rampant Fiji team ran in five superb tries to New Zealand's four to win the Cathay Pacific / HSBC Hong Kong Sevens 35-28 and close the gap at the top of the HSBC Sevens World Series to just two points.
Waisea Nayacalevu scored each side of half time as an inspired and emotional Fijian team seized the initiative early on and rarely gave it up to clinch a first triumph in Hong Kong since 2009.
For captain Setefano Cakau, who was in inspired form in the final, it was his first Cup victory in Hong Kong.
"For me it is the first time I have played in and won a Cup final here," Cakau said after lifting the Cup.
"I have been here for six years and it is my first victory as captain so I thank the boys because I know they worked very hard this afternoon.
"It was our mission to win and now we will keep building on it for next week. I know it is another tournament and a big task ahead of us so we will regroup and work on what is ahead of us in Japan."
In reaching their fifth Cup final of the season New Zealand kept their lead at the top of the World Series on 111 points, but the Fijians have cut that lead to just two points.
"We are disappointed, you never want to lose a final, especially in a place like this," said New Zealand captain DJ Forbes.
"But fair play to them, they came out firing. Ultimately it is about the World Series, so it was pleasing to get some points out of this, and for a young team with some guys who have never played here before I am really proud."
Earlier, Fiji become the first side through to the Cup semi finals after beating Argentina 26-7 thanks to Metuisela Talebula's fifth try in Hong Kong before Dan Norton scored twice to book England's place alongside the islanders.
Norton had scored early in the second half to become the season's leading try scorer, before running the length of the field to snatch a dramatic 14-12 victory at the death against Australia.
USA Sevens champions Samoa lost to South Africa 27-14 in the third semi thanks to two tries from Cornal Hendricks, whilst two tries from Ardie Savea put Gordon Tietjens' side through by beating Wales 31-7.
Silverware for Samoa and Kenya
Samoa left it late to beat Argentina 12-10 in the final of the Plate to lift some silverware at the 2012 Hong Kong Sevens after Paul Perez scored a hat-trick for the USA Sevens champions in their 36-7 semi final victory against RWC Sevens champions Wales.
Argentina beat Australia 21-12 to reach the Plate final thanks to tries from Martin Chiappesoni, Agustin Migliore and Diego Palma.
In the Bowl, Kenya came from 12-0 behind to beat USA 14-12 in the final after they had earlier beaten France 29-0 in the semis and USA had proved too strong for Scotland, winning 28-14.