The Young Socceroos have battled their way to glory in the Under-20 Asian Cup, beating Saudi Arabia in a penalty shootout in the final on a breakthrough day for Australian soccer in China.

Led by inspirational player-of-the-tournament Alex Badolato and boosted at the death by the goalkeeping of Steven Hall, the team made up largely of teenagers, became the first Australian side to lift the continent's junior crown in the tournament's 66-year history.

Coach Trevor Morgan's outfit were probably the superior team over an engrossing two hours in Shenzhen's Baoan Sports Centre on Saturday night, but had to settle for a 1-1 draw over the 90 minutes before extra-time couldn't separate the sides.

In the shootout, though, the Australians kept their nerve best, converting all five spot kicks confidently before Hall proved their hero, saving the last of the Saudi Arabian penalties from a crestfallen Bassam Hazazi to seal a 5-4 win.

Amid ecstatic scenes, the Young Socceroos enjoyed becoming the first Australia soccer team to win a major tournament since Ange Postecoglou's Socceroos lifted the 2015 senior Asian Cup.

It put the seal on a remarkable tournament for the Australian youngsters, most of whom play in the A-League Men, as they won all six matches, scoring 16 goals, while also booking a place in the Under-20 World Cup in Chile later this year.

For Hall, once the youngest goalie to appear in the A-League Men, it was a special night which had looked, initially, as if it might prove a heartbreaking one as he was culpable for the Saudis' equaliser in first-half stoppage time.

With the Young Socceroos leading 1-0 through Louis Agosti's 24th minute volley, the Saudis levelled when Talal Haji's rocket header was bulleted straight at Hall, who had already retreated behind his own goalline when he made the save.

Hall looked a picture of misery when, after a lengthy deliberation by VAR, it was ruled the keeper who's now plying his trade with Brighton in the Premier League had made the stop behind the line.

But it was Hall's only blemish as he made a couple of key saves even before he went low to his right and stuck up his left-hand instinctively to thwart Hazazi in the shootout and send his teammates into delirium.

Australia's Italy-based captain Sebastian Esposito reckoned the setback just before the break never unsettled his side.

"We were very confident, we know how good we are, we've had belief in this group for two years," said the Lecce defender.

"It's unbelievable, and we can't wait to lift the trophy and go on to the World Cup. We're ready for the World Cup, we're ready for anything!"

Coach Morgan had hoped his players would enjoy being in the "shop window" for their continental triumph, and there were several stand-outs, like Danish-based Musa Toure, QPR's exciting winger Daniel Bennie and the outstanding Melbourne Victory midfielder, Badolato, on loan from Western Sydney, who caught the eye.

The 20-year-old Badolato was the tournament's MVP for a series of influential displays, capped by his brilliant goal in the quarter-final win over Iraq.

He nearly scored on Saturday too, screwing one just wide after the break while Jaylan Pearman, one of three subs introduced boldly by Morgan at halftime, also came agonisingly close to firing home in the 74th minute before Adelaide's Luka Jovanovic headed over another opportunity in stoppage time.

When it came to the shootout, Jovanovic, Badolato, Perth Glory's Pearman, and the Adelaide pair of Jonny Yull and Panagiotis Kikianis all scored, before Hall's match-winning stop.