The opening period belonged to Spain but a strong performance after the half-time break from the Norwegians saw them crowned champions of Europe for a sixth time since 1994.
The result now means Thorir Hergeirsson's side have qualified for the next two major international handball tournaments - the Women's World Championship in 2015 and the Rio Olympic Games in 2016.
"I didn't expect anything from this championship and I am so proud that my team and I have made it so far," said Norway's Silje Solberg, who was later named the best goalkeeper of the tournament.
Tokyo 2020 - France vs Russia - Handball - Olympic Highlights
"We just had a faith in ourselves. We came back in the matches, never gave up and kept fighting and it was enough, so I am proud."
Defeat for Spain was their second narrow brush with glory, having lost to Norway in the 2008 final too.
Revenge appeared to be on the cards early on at the Papp Laszlo Sportarena though, as Spain overcame some initial nerves to take a 4-3 lead thanks to three goals in six minutes by Alexandrina Cabral.
At the other end, Spanish goalkeeper Silvia Navarro was in top form, helping keep Norway scoreless for over 10 minutes during the first half and ensuring her side went into the break holding a 12-10 lead.
But once the teams re-emerged it was Norway who looked the more likely and the Scandinavians finally went ahead on 35 minutes.
That advantage was not to be relinquished, even though the margin was reduced to a single goal with two minutes remaining on the clock.
But Linn-Kristen Riegelhuth Koren scored to open up a two-goal lead and when Solberg made a save at the other end, the writing was on the wall.
“This gold medal is very special to me," said Norway player Heidi Loke. "It was so great when I ran to the court and fans were greeting me and calling my name. I feel here like at home and it is really a great feeling to be here."
In the earlier bronze medal match, Sweden secured their first third -place finish with a 25-23 win over dethroned champions Montenegro.
Tokyo 2020 - Norway vs Sweden - Handball - Olympic Highlights
Tokyo 2020 - France vs Denmark - Handball - Olympic Highlights