Langer shot a 67 for the day, good enough to edge out Daly and Fredrik Jacobson (67) by a single shot. The victory marks not only his fourth in this particular event, but his eleventh overall in his homeland of Germany.
The win did not come easy, however ' the final round was nothing less than a classic showdown.
Langer, who began the day with a two-shot lead, was his usual rock-solid self throughout the round, rattling in six unanswered birdies through his first 16 holes of the day to retain the lead.
He nearly faltered at the par-4 17th, however, as his approach shot came up well short and barely in bounds.
At first, his ball was thought to have gone into water short of the green, but it was finally found nestled in a deep patch of grass.
'The grass was longer then in the past so I was very fortunate, admitted Langer.
The veteran took advantage of his fortune, pitching out nicely to eight feet, and sinking his par putt.
The hole proved to be crucial, as Daly was beginning to put on a show not far ahead.
Three-under through his first 12 holes, the long-hitting American caught fire late in the round, eagling the par-5 13th and then adding two more birdies at the 15th and 16th holes to get to 21-under.
However, the 35-year-old and two-time major champion could not muster any more magic over the final two holes and ended with a day-low 65.
I had a slow start and a fast finish, said Daly, who was coming off a third-round 64, as well as a win one month ago at the BMW International Open.
I played the last 45 holes in 20-under-par, which isnt too bad. I had a lot of opportunities and overall its been a good week in Germany again.
The week was just a little better for Langer, however, who had actually arranged for a private jet to transport Daly and his wife to get to the tournament earlier in the week.
The 44-year-old slipped with a bogey at the closing 18th, but his 67 was good enough to win by one stroke.
His first-place prize of $414,585 marked his largest check ever on the tour and it boosted him to third on the Volvo Order of Merit, behind Retief Goosen and Darren Clarke. The win was his 39th overall on the European Tour, and his second this season.
Said the champion: 'I never gave away my lead, which was important.
Click Here for Full-Field Scores from the Linde German Masters.