Riding on the triple strike from the Uruguayan legend, who combined beautifully with fellow-South Americans Brito Alves, better known as Cafu, and Matias Frederico, Mumbai outplayed Blasters to leapfrog Delhi Dynamos and occupy the top of the table with 19 points from 12 games.
The massive defeat left Blasters in fourth place with 15 points from 11 games.
The Uruguayan striker, also the team's skipper, scored in the 5th, 14th and 63rd minute to the delight of the home team supporters at the Mumbai Football Arena in suburban Andheri before going off the field.
Forlan was in his element from the beginning of the match today and brought the roof down with his brilliant twin strike within the first 15 minutes to silence the large number of supporters of the 'Yellow Brigade' from the south.
The Uruguayan first latched on to a beautifully weighted lob from Argentinian medio Frederico by running forward to reach the ball and beat rival 'keeper Graham Stack with an angular shot that bulged the left corner of the net in the fifth minute.
Indian captain Sunil Chhetri nearly squeezed in a back heel of the flag kick from Forlan but was cheeky try was stopped in the nick of time by Slack.
But Slack had no answer when Mumbai earned a direct free kick off which Forlan scored with an amazing 30-yard effort in the 14th minute, beating the defensive wall of Blasters as well as the English custodian hands down to find the top corner.
In an attempt to beef up the attack, Blasters replaced defender Pratik Chaudhary with Thongkhoisiem Haokip in the second half, but they hardly had a good look at the home side goal barring a couple of occasions.
Blasters goal had another close shave early in the second half when Forlan once again uncorked a direct free kick, from ten yards outside the box after Cafu was fouled, that sailed just wide of the left upright.
Five minutes later Cafu got into the goal-scoring act by finding the top right corner before Goian headed in Mumbai's fifth goal.
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