France took lead in the 18th minute after Mario Mandzukic scored an own goal while heading away a free kick from Antoine Griezmann.
Perisic and Mandzukic both scored for Croatia, first to equalise in the 28th minute and later as a consolation goal in the 69th, embarrassing Lloris with a flicked shot as the France goalkeeper tried to dribble the ball out of his goalmouth.
"As a football fan, this is the sort of thing you dream of at the beginning of a World Cup", said Al Jazeera's Natacha Butler, reporting from Paris. "I just want to say one sentence about that penalty: You don't give a penalty like that in a World Cup final".
The victory means that Didier Deschamps, captain of the 1998 side, becomes the third man to win the World Cup as player and coach after Brazil's Mario Zagallo and Germany's Franz Beckenbauer.
France, strongly fancied to win the final, started their tournament in France slowly, beating Australia and Peru by the odd goal before a goalless stalemate with Denmark saw them top the group.
France is the established power with a young team full of speed and skill.
However, despite pushing in the final 20 minutes, Croatia could not get back into the match and France were crowned World Cup champions for the second time. After Croatia came out of the break hot yet again, with more than a few chances to equalize, France shut the door on the match.
France and Croatia went head-to-head on Sunday in Moscow to compete for the 2018 World Cup championship. "The French did not surprise us, we let in two soft goals coupled with an own goal and a penalty".
But they moved up through the gears in the knockout stages, seeing off Lionel Messi's Argentina in a seven-goal thriller before cruising to a 2-0 win against Uruguay and seeing off Belgium 1-0 in the semi-final.
Mbappe then added his name to the scoresheet in the 65th minute when he collected a Lucas Hernandez pass and fired low past Danijel Subasic from 25 yards, capping what has been a fine tournament for the 19-year-old.
"We are sad but we must be proud also for what we've done". "We dominated and then the penalty was given".