After a hard-fought but ultimately unappealing contest in the Turkish capital of Istanbul, Uruguay's hopes were buried as they missed their first two penalties.
They scored their third and final penalty to make it 3-1, but France slammed home the winning penalty to complete a historic win before a sparse crowd for such a match at the enormous Ali Sami Yen Arena.
Juventus midfielder Paul Pogba - the former Manchester United player - netted France's first penalty in the shoot-out, and they never looked back from that point onwards as the South Americans lost their cool when it mattered most.
France goalkeeper Alphonse Areola made two saves in the penalty shoot-out with Dimitri Foulquier slamming home the winning penalty for the French.
Emiliano Velazquez and substitute Giorgian De Arrascaeta both saw their penalty attempts saved by Foulquier.
France had dominated possession for large swathes of the match, but Uruguay had the better chances with Felipe Avenatti seeing an effort blocked by Areloa after he had been played in by Giorgian De Arrascaeta.
De Amores in the Uruguay goal also made two stops to repel efforts from Jordan Vertout and Alexy Bosetti.
Elsewhere, Ghana claimed third place earlier in the day with a 3-0 win over Iraq in the third/fourth place play-off courtesy of goals from Joseph Attamah, Ebenezer Assifuah and Frank Acheampong.
- Sports & Recreation