City needed two goals in injury time to come back to beat Queens Park Rangers 3-2 and claim a first title for 44 years.
Manchester United won 1-0 at Sunderland to finish level on points but behind on goal difference.
Edin Dzeko and Sergio Aguero were City's heroes, finding the target in added time to kick-start the celebrations at Eastlands.
"To win like this is incredible. I have never seen a final like this. After 44 years, I dedicate this to all of our supporters," said City coach Roberto Mancini.
Arsenal finished third after beating West Bromwich Albion 3-2 while, at the other end of the table, Bolton Wanderers were the final team to be relegated after drawing 2-2 at Stoke City.