Farah came into Sunday's race full of confidence having won double gold in the 5,000m and 10,000m at the European Championships in Zurich.
And in his first British track race of the year having missed the Commonwealth Games in Glasgow through illness, Farah did not disappoint.
Sprinting clear of the field on the final lap, the 31-year-old's eyes were firmly on the clock as he crossed the line in 8:07.85 minutes.
It smashed Ovett's previous mark of 8:13.51 set back in 1978 and Farah admitted it had been the perfect way to mark his twin girls' second birthday.
"Early on I felt a bit tired and then as I got into it I felt better and better, so I kept looking at the clock and thought you can do it, you can do it," he said.
"Last week has given me good confidence, starting on the 10K then finishing on the 5K.
"This record hopefully will stay. It's my girls' birthday today, so that will mean a lot to me, they've just turned two so it's nice to think 'daddy broke the record that day'."
Elsewhere at Birmingham's Alexander Stadium, Lynsey Sharp sealed an impressive victory in the women's 800m.
The 24-year-old, who has picked up Commonwealth and European silver this summer, beat world and Commonwealth champion Eunice Jepkoech Sum of Kenya in a time of 1:59.14 minutes while Laura Muir set a new personal best of 2:00.67 in fourth.
Sharp said: "I have very tired legs and it's been hard to pick myself up after the Commonwealths and Europeans.
"But it's amazing to have a full crowd cheering you on. To come back and run in front of a home crowd near the end of the season is brilliant."
Christine Ohuruogu was another to toast a win, powering home first in the women's 400m with Kelly Massey setting a new personal best in fifth and Anyika Onuora and Shana Cox sixth and eighth respectively.
There was also a podium finish for Martyn Rooney who clocked 45.25 seconds for third in the men's 400m behind Olympic champion Kirani James, with fellow Brit Matthew Hudson-Smith seventh.
And Eilidh Child crossed the line in 54.89 seconds for second in the women's 400m hurdles with Shona Richards sixth.
Olympic, Commonwealth and European champion long jump Greg Rutherford could only manage fourth, finishing 5cm off winner Christian Taylor of America.
While in the 100m races, Asha Philip was the highest placed female Brit in third with Chijindu Ujah one place lower in fourth in the men's equivalent.
- Sports & Recreation
- Commonwealth Games