Both teams finished the 72-hole competition, where two of three players' scores counted each round, at 6-under-par 578 at the par-73 Palm and Bunga Raya Courses at Saujana.
Australian Lindsey Wright posted a 1-under 72 Saturday and teammate Katherine Hull shot an even-par 73 but it was the third member of the trio that came through. Vicky Uwland carded a 5-over-par 78 to Thailand's 8-over-par 81 to award the Australians the Espirito Santo Trophy.
'It's unbelievable,' said Australian captain Liz Cavil. 'I thought we could do it. The team is just so talented. They ground it out very hard. It's a dream for us all.'
Thailand's attempt to become the seventh wire-to-wire victor of this event was thwarted. Their two lowest scores were a 2-over 148 thanks in part to the 16-year-old identical twins, Aree and Naree Song Wongluekiet.
'I didn't feel like we lost,' said Aree Song Wongluekiet. 'Everyone on our team played consistently. It was hot and it was a long week. The club got heavy at the end and the hills were getting steep. But, I am proud of the way we played.'
Spain, which entered the final day one stroke behind Thailand, finished third at 5-under-par 579. Germany placed fourth at 3-under-par 581, followed by the United States at even-par 584, which was its 19th top-5 finish in 20 events.
France, the 2001 champion, finished tied for 15th at 13-over-par 597.