Henman knocked out in London
American Martin progressed to the final after his victory over the former British number one.
Neither player could grab the initiative in a tough-fought opening set but it was Henman who lost his focus when a tie break ensured, winning just a single point to hand the opener to the American.
To the disappointment of the home fans Martin never looked back, winning the second set comfortably for a place in the final against Goran Ivanisevic.
“Things really clicked for me in the tie-break,” 40-year-old Martin said afterwards.
“I think it’s a matter of getting used to your surroundings, but being in the semi-finals, on a court like this, in front of all these people, it inspires an old man to do something!"
Ivanisevic booked his place in the final with thrilling a 6-7(4) 7-6(5) 10-8 victory over Australian Pat Rafter in arguably the match of the tournament so far.
In a repeat of the 2001 Wimbledon final, the Croat edged Rafter in a champions tie break, with both previous sets having been settled by tie breaks.
Ivanisevic meets Martin in the final on Sunday afternoon.