The top-ranked Serb recovered from early breaks in both sets and beat Federer 7-6 (6), 7-5 Monday in the championship match at the ATP finals.
Federer broke Djokovic’s serve to take a quick 2-0 lead in the first set, and then again to open to the second set, but the world’s No. 1 player rebounded each time.
The crowd at the O2 Arena was decidedly in Federer’s favor, but they cheered loudly throughout the match as both made spectacular shots.
The highlight for Federer came in the tiebreaker with Djokovic holding his second set point.
Djokovic hit a forehand drop shot with Federer up at the net.
The ball drifted past the second-ranked Swiss star, but he chased it down and whacked a forehand winner to even the score at 6-6.
Two points later, Djokovic was the one celebrating, ending the set with a forehand winner on his third set point.
Federer broke Djokovic for the third time at the start of the second set and then held all the way to 5-3.
A game later and serving for the set, Federer had two set points but he put a forehand wide and then a forehand into the net.
Two more Federer mistakes put Djokovic back on serve and back on track for the title.
The Serb closed it out with a backhand passing winner to improve his head-to-head record against Federer to 3-2 this year, and 13-16 overall.
It was Djokovic’s second victory at the year-end tournament for the top eight players in the world.
He also won in 2008, when the tournament was in Shanghai.
Federer, who is now 15-3 in Britain this year after winning his seventh Wimbledon title and the Olympic silver medal, had been looking for his record seventh title.