Manchester City defender Manuel Akanji scored a penalty shoot-out winner against Manchester United to give Pep Guardiola's side their first silverware of the new season.
Akanji, who missed the crucial penalty for Switzerland against England in the Euro 2024 quarter-finals, tucked his spot kick away after United's Jonny Evans had put his effort over the bar.
It meant City triumphed 7-6 on penalties after the game had ended 1-1 after 90 minutes. It was the Guardiola's 18th trophy as City manager.
Substitute Alejandro Garnacho thought he had scored the winner against the Premier League champions when he repeated his FA Cup final goalscoring heroics from 77 days earlier by slotting home in the 82nd minute.
But another replacement, Bernardo Silva, headed a last-minute equaliser for City to make it 1-1 and take the match to penalties.
Andre Onana saved from Silva early in the shoot-out but Jadon Sancho, back for United following his bust-up with Erik Ten Hag, saw his spot kick kept out by City goalkeeper Ederson, who then stepped up to make no mistake with the fifth penalty for his side.
Evans then blazed United’s eighth penalty high over the top before Akanji secured the win for City.
City were without their England Euro 2024 finalists Phil Foden, Kyle Walker and John Stones rested Spain midfielder Rodri.
Jack Grealish was a surprise absentee while Kevin De Bruyne and Silva started on the bench.
So it was left to their supporting cast to provide the early fireworks and Jeremy Doku was the first to show any attacking intent, nutmegging Diogo Dalot down the left before fizzing in a low cross just behind debutant Nico O’Reilly.
Oscar Bobb then fed James McAtee, who came closer still when he curled his shot around Onana and back off the inside of the far post.
United, with Mason Mount and Bruno Fernandes the furthest forward and Marcus Rashford playing on the left wing, created their first chance just before the half-hour when Amad Diallo curled a shot across goal and wide.
And it was Ten Hag’s side who should have scored moments later when Diallo played a one-two with Casemiro and squared the ball for Mount, who was just too slow to react for what would have been a tap-in.
Rashford, who, like Grealish, was left out of England’s squad in Germany, had an early chance to impress the watching interim national boss Lee Carsley when Casemiro found him unmarked on the left, but he stabbed his shot tamely across goal and wide.
United thought they had taken the lead eight minutes into the second half when Lisandro Martinez played in Fernandes, who curled a superb effort over Ederson and into the net, but the Portugal star was flagged offside.
A raft of substitutes for both sides followed, including debuts for young United midfielder Toby Collyer and City’s £30 million summer signing, the Brazilian winger Savinho.
Then came a big moment for Rashford, Garnacho squaring the ball to leave the forward clean through, 14 yards out, unmarked and with just Ederson to beat – only for a hurried, first-time effort with his left foot to clip the post.
A United goal was coming, though, and it arrived nine minutes from time when Fernandes swept the ball across goal and Garnacho expertly applied the finish.
But with just a minute to go City hit back, Bobb swinging in a cross and Bernardo Silva rising above Facundo Pellestri to nod home the equaliser and take the encounter to spot-kicks.
Afterwards Akanji told ITV: "I let the others shoot first because obviously when you miss a penalty, you don't go into the next one with that much confidence. I told Ederson I would shoot it down the middle in training so I did it and it went in.
"Ederson is probably the best penalty taker in our team, Erling [Haaland] as well. When Ederson takes the penalty I know it is a goal.
"It is a great start to the season, I haven't won the Community Shield yet so I'm really happy that I got this trophy as well and we look forward to hopefully win the next one soon."
Man of the match Bobb said: "Great feeling, first time we have won it three, four years and do it with a young group is great. We had belief all the way through, we kept going, didn't get too downbeat.
"It's another trophy, it's a great start. Gives us a lot of confidence and no negatives."
Guardiola said: "I enjoyed the season against our rival in Manchester and to start the season with a title is good. We are really pleased."
On Ederson, he said: "He is our best penalty taker. Along with Erling Haaland and Kevin de Bruyne. All three are our best."
