Croatia will play against either Italy or Spain, who face off in the second semi-final in Enschede on Thursday, for a first major title as they continued their form from last year’s World Cup in Qatar, where they finished third.
Substitute Bruno Petkovic curled home a stunning shot from the edge of the penalty area eight minutes into extra time to put them on their way and Luka Modric made sure of Croatia’s triumph with a late penalty, their second of the game.
The Dutch, hosting the four-nation tournament, had forced extra time with a last-gasp equaliser to ensure it finished 2-2 after 90 minutes despite being largely outplayed in front of their home fans at the Feyenoord Stadium.
After the match, Croatia coach Zlatko Dalic heaped praise on Luka Modric who was once again the architect in midfield.
"He can be the one to help us win the gold medal," Dalic told reporters, before addressing Modric's future.
"Luka will decide for himself after the finals, but with him we are way better, we have far more quality."
Croatia finished third at the World Cup in Qatar in December, four years after a runners-up finish at the tournament in Russia.
They will face Spain or Italy in the Nations League final on Sunday and Dalic hopes they can finally win a major tournament to crown a golden era for the national team.
"It would be a great reward to win the gold medal, I think we have deserved it," Dalic said.
"We have been a team of constant quality for the past six years."