Chennai bowlers wreaked havoc to dismiss Punjab for 117 in 18.2 overs after Dwayne Bravo hammered 67 balls off 39 balls and took his team to an imposing 182 for seven in the second semifinal at the Rajiv Gandhi International Stadium.
Mohit Sharma (2/14)), Ashish Nehra (2/9), Pawan Negi (2/28) and Suresh Raina (2/10) did the damage as Punjab's batting came a cropper.
2010 Champions Chennai now face reigning IPL champions Kolkata Knight Riders in the final on Saturday.
It became a one-side affair when Punjab collapsed to 61 for seven in the 11th over, needing an improbable 122 runs off the last 54 balls.
Wickets kept on falling regularly after Punjab lost opener Virender Sehwag in the first over. Glenn Maxwell too fell cheaply, ending his lean run in the competition.
It was an unexpected batting collapse from Punjab, who came into the match as the only unbeaten side alongside Knight Riders.
Earlier, Bravo got good support from Faf du Plessis (46 off 33) to take Chennai to a challenging score.
Punjab had things under control for the first six overs after skipper George Bailey decided to put the opposition in.
Fast bowlers Anureet Singh and Awana impressed with the new ball against a dangerous Chennai batting unit.
A quick incoming delivery rattled the stumps of Dwayne Smith (14) while his opening partner Brendon McCullum (6) played to rash shot to be caught at mid-wicket off Thisara Perera.
Raina (6) started his innings with a delightful drive through the cover before he pulled a sharp catch to Bailey at mid-on, leaving Punjab at 41 for three in six overs.
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