Like Sindhu, it was the first ever appearance in the final of the world championships for Okuhara, who incidentally is the first Japanese woman to do so.
The two-time bronze medallist beat the junior world champion 21-13 21-10 to enter the final.
When Sindhu played the game at her pace, deep to the back of the court, slowing down Okuhara's manic returning speed and retrievability, giving herself a chance to breathe, she was able to force the error or wrap up the point. But, the Indian has an upper hand in the last two meetings at Rio Olympics and 2017 Singapore Open. Nehwal had won the silver medal in 2015 here at the world championships, and Sindhu would be hoping to go one better over her compatriot this time.
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Sindhu now has a world rank of 4 but she has been ranked as high as world No 2. I just have to play my game and give my best tomorrow. Stay tuned for the latest updates.
The Japanese top seeds blew a 15-10, first-game lead before losing to the fourth-seeded Chinese pair of Chen Qingchen and Jia Yifan 21-17, 21-15. The Japanese took the benefit of Saina's tiredness as she used the whole court perfectly to take the game to 10-3.
From 17-20, Nozomi levelled the game at 20-all but Sindhu suddenly found legs to win two straight points and push the topsy-turvy contest into the decider. Taking hold of the game again, the Indian player ended the first half 11-9.
The Chinese player had no words to explain the game of Sindhu in the match.
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Catching up in the game, Sindhu managed three game point opportunities but failed to convert all.
India's other badminton sensation Saina Nehwal won bronze.
There he will play Lin Dan, who has reached his first semi-final since winning his record fifth world title in 2013. For Okuhara, the Saina match was a strenuous one and it will be interesting to see how well her body has recovered.
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The hotel was a guest house usually used by farm workers, said United Nations refugee agency spokesman William Spindler. When the review was complete it would announce the results, it said.