Rooklie middle-order batsman Hasmish Marshall showed amazing calm and composure under extreme pressure to make a match-winningg unbeaten 52 as the Black Caps overhauled Australia's target of 246-9 with two balls to spare.
Wicketkeeper Brendon McMullum also did a wonderful job as he and Marshall ran hard behind the wickets and put pressure on Australia, who were sniffing a win after the Kiwis required thirty runs to win off their last three overs with the big-hitters Chris Cairns and Jacob Oram back in the hut.
McCullum was unconquered on twenty and scored the winning run working Shane Watson through the cover region for a single to spark off celebrations in the New Zealand camp.
Opener Nathan Astle gave New Zealand the perfect launch-pad hitting an enterprising 70 at the top of the order, before young Marshall stole the thunder belting three fours in the 48th over off veteran Mike Kasprowicz to swing the pendulum in New Zealand's way.
Earlier, Adam Gilchrist clubbed a stroke-filled 68 off 54 balls at the top of the order as the Aussies raced to 113 for one before a middle-order collapse set them back. Darren Lehmann also chipped in with a fine 50 to carry the hosts past the 200-run mark.
New Zealand captain Stephen Fleming won the toss and elected to field under the closed roof at the Docklands Stadium.
New Zealand lead the three match series 1-0 with the second tie slated to be held in Sydney.