Williams eased through his early rounds, Jimmy Robertson and Robert Milkins proving nothing more than a warm up for the left-hander who then beat Ali Carter in the quarter-finals.
Having knocked out O’Sullivan in the previous round, Carter was fancied by many to have the edge over Williams but some brilliant snooker, including four century breaks, saw the latter win comfortably 13-8.
Williams faced a much sterner challenge against Barry Hawkins in the semi-finals but having trailed throughout the match, produced a terrific late surge to get over the line 17-15.
It proved to be another Crucible epic, a packed crowd soaking up an electric atmosphere as the clock ticked towards midnight.
It was Williams who held himself together best, though, a superb long pink and a cut-back black sealing his victory.