The Scottish actor and his dance partner Katya Jones jumped in delight after being revealed as winners live on BBC 1 tonight.
The Glasgow-born star, best known for his roles in Heartbeat and Holby City, said “it was completely surreal” to be crowned champion of the long-running series.
Paying tribute to his fellow contestants, he added: “I’m so in awe of everyone who started all those weeks ago. We’ve been such a tight unit and I love them all to bits. Every one of us here are winners.”
He said his dance partner was “the most amazing woman” who had stuck with him throughout the series.
At 42, McFadden is the oldest champion in the show’s history.
He was joined in the final by Gemma Atkinson, Debbie McGee and Alexandra Burke.
McFadden and his partner performed a Viennese waltz to Somewhere My Love from Dr Zhivago and showdanced to Hall and Oates’ You Make My Dreams.
Nicola Sturgeon was among those who congratulated McFadden on Twitter, writing: “Brilliant! Well done to the lovely @mrjoemcfadden - well deserved @bbcstrictly champion”.
Theresa May also congratulated McFadden, tweeting: “It’s been fantastic watching the talented #Strictly stars over the past few weeks - congratulations to @mrjoemcfadden, commiserations to my constituent @thedebbiemcgee! #StrictlyFinal”.
Alexandra Burke had topped the Strictly Come Dancing leaderboard before the finalists performed their final dance of the evening.
The singer and partner Gorka Marquez scored full marks for their American smooth to Wouldn’t It Be Loverly from My Fair Lady and a near-perfect 39 for their showdance to There’s No Business Like Show Business by Ethel Merman.
The showdance was described as “pure showbiz” by judge Bruno Tonioli while Craig Revel Horwood labelled it “brilliant”.
In second after their first two performances was actor Joe McFadden and partner Katya Jones as they edged out radio presenter Debbie McGee and partner Giovanni Pernice.
McFadden’s showdance to You Make My Dreams by Hall & Oates picked up 39 points from the judges, who are scoring just for guidance, while McGee’s balletic approach to her own freestyle earned 38 points.
Both celebrities had collected 39 for their initial dances.
Darcey Bussell said former Holby City star McFadden had become “one snappy mover” while Shirley Ballas applauded the couple, saying she was sure everyone wanted a part of their “magical magnificence”.
In fourth place was actress Gemma Atkinson and partner Aljaz Skorjanec, who earned 38 points for their paso doble to Viva La Vida by Coldplay and a further 37 points for their showdance, which Revel Horwood said he “liked but didn’t love”.
Head judge Ballas said she disagreed with Revel Horwood’s comments, saying emphatically “I was impressed”.
The judges’ scores during the final are only used as guidance, with the winner being voted for by a public vote.