Eyeing maiden major title of her career, world No 12 Dipika faltered against the 18-year-old qualifier 7-11, 11-5, 7-11 to lose in 48 minutes.
The 22-year-old Dipika was celebrating the biggest Tour final of her career - while world junior champion El Sherbini was continuing the form of her life which had seen the youngster reach last month's WSA World Championship final after upsetting world No 1 Nicol David.
The Chennai girl had earlier packed off eighth-ranked Madeline Perry in the semi-final but failed against the 13th-ranked Egyptian.
El Sherbini was quick share her joy with her Facebook fans.
"So happy to win my 4th and my biggest title in my career in the Texas Open -it's been an amazing week here started from the first round of the qualification," she posted on her facebook page.
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