The Three Lions beat Venezuela 1-0 in the Final in South Korea on Sunday lunchtime with Everton striker Dominic Calvert-Lewin netting the only goal of the match in the first half.
It ends decades of English underachievement on the global stage since winning the senior World Cup 51 years ago on home soil.
"We're very happy. Ecstatic, actually", said David La Boon from England, as he emerged from the packed stadium after the match, surrounded by jubilant fans wearing England shirts. "We have proved we are as good as any country and hopefully there will be opportunities for the lads next season".
An Everton side including Kenny, Calvert-Lewin and Dowell won the inaugural PL2 competition for under-23 players, created to bridge the gap from academy football to the first team. A recent UEFA report found that 62 percent of players in England's top tier were foreign - the highest in Europe.
Venezuela were quickest out in the blocks in the second half and Woodman raced off his line to deny Sergio Cordova at close quarters as the South American side exploited rare space inside the England box.
Penaranda got up to take the spot kick only to see his effort down the middle saved as the diving Woodman flung a hand behind him, and England held out for their long-awaited World Cup win.
Seven long minutes of injury time were played, during which Woodman had to be treated for an injury, but was able to carry on and be on the pitch when the final whistle blew, confirming England as World Cup winners!
"I was trying to tell the ref it wasn't a penalty and to look at VAR and he came back and said they'd looked and it was".
Paul Simpson's side came from behind to beat Italy 3-1 in Thursday's semi-finals and set up Sunday's showdown with Venezuela in Suwon, South Korea.
Twenty-year-old stopper Henderson is yet to make a first-team appearance for United, and played on loan at Grimsby Town last season.
Still, it nearly extended its lead out of nowhere.
England were unfortunate not to double their advantage when Josh Onomah hit the crossbar before the game's defining moment arrived.
With 17 minutes remaining, Dutch referee Bjorn Kuipers pointed to the spot after Jake Clarke-Salter took down Penaranda in the area.