While she managed just 12 batting at No.5 in the final in Mumbai, off-spinner Sthalekar returned to snuff out a West Indies fightback with an economical spell of 2-20 as Australia cruised to a 114-run victory early on Monday.
Australia started celebrating their sixth World Cup title triumph after Sthalekar took a brilliant one-handed diving catch at mid-wicket to complete the big win.
The 33-year-old later revealed she would retire after a career including eight Tests, 125 ODIs and 54 Twenty20 matches.
Sthalekar, who was also on the 2005 World Cup-winning team, was the first woman to score 1000 runs and take 100 wickets in ODIs.
She is ranked the No.1 T20 all-rounder and bowler in the world and holds the No.2 ranking for ODI all-rounders and bowlers.
Born in the Indian city of Pune, Sthalekar won the Belinda Clark Award as Australia's best international female cricketer in 2007 and 2008, the same years she was nominated for the ICC women's Player of the Year award.
Sthalekar said the decision to retire from international cricket did not come easy.
"To finish my international career by playing in a successful ICC Women's World Cup in the country of my birth is quite special for me," Sthalekar said in a statement.
"I feel that this is the right time for me to retire and I've been fortunate to be able to represent Australia for as long as I have.
"Women's cricket has changed a lot during my time in the game and it's been an honour to witness this evolution first hand.
"Cricket has given me a great deal during my life and I want to be able to give something back, whether it be through coaching, mentoring or other avenues."
Sthalekar will make a decision about her future at state level at a later date.