Riyad Mahrez was at the double for the Sky Blues, who now face either Real Madrid or Chelsea in the Istanbul showpiece on 29th May.
Les Parisiens were second best for much of the game and failed to muster a single effort on target in 14 attempts!
To make it worse, Angel Di Maria was also sent off for the visitors in the 69th minute for kicking Fernandinho, making PSG's task of coming back into the game even harder.
Kylian Mbappe, who picked up a calf injury last weekend, was left on the bench as his side clearly missed his speed and penetration.
A night of celebrations for Pep Guardiola and co., who will now aim to clinch the Premier League title too this weekend.
Here are the player ratings for both Manchester City and Paris Saint-Germain:
Ederson Moraes - 7/10
He made one poor underarm pass which gifted Di Maria a chance. Other than that, the Brazilian was in command of his area and didn't have to face a single shot.
Kyle Walker - 7/10
Walker's attacking game was very limited as he had to marshal the flank, but came up trumps defensively, keeping Di Maria quiet in the first-half.
John Stones - 7.5/10
Another excellent outing for Stones, who dealt with Neymar well and made a few important blocks too.
Ruben Dias - 8/10
Dias showed his leadership qualities in a stupendous performance, highlighted by two epic headed clearances, among the many fine blocks. He's fast becoming one of Manchester City's best signings o modern history.
Oleksandr Zinchenko - 8/10
The strapping Ukrainian justified his inclusion tonight over Joao Cancelo with a fine display in defense and even played a huge part in the opening goal with an excellent cut-back for De Bruyne.
Riyad Mahrez - 8/10
Mahrez was a huge threat all night and took both of his goals tonight clinically. That means three of Manchester City's four goals against PSG came from him. Truly a world-class winger.
Fernandinho - 7.5/10
The veteran Manchester City midfielder made a difference with his experience and helped clamp down on Neymar at times.
Ilkay Gundogan - 7/10
Gundogan wasn't a direct threat in this game but was heavily involved in the proceedings and made two key passes too.
Phil Foden - 8/10
The 20-year old starlet was impressive once again with his skill and brisk speed on the flanks. He even laid out a fine assist for Mahrez before hitting the post. Manchester City's next big thing.
Kevin De Bruyne - 7.5/10
It wasn't the best night for the Manchester City wizard but produced moments of quality we've come to know of him for. He linked up brilliantly with Foden for the first goal and looked dangerous as the match wore on.
Bernardo Silva - 7/10
Silva was the key to creating space for others to run into and was generally tidy in possession, barring that one moment in the opening stanza where he gave the ball away to Di Maria, whose subsequent effort just whizzed past the post.
Raheem Sterling - 5/10
He made just five touches on the ball in over 10 minutes of play. Tells you everything about his cameo tonight.
Gabriel Jesus - 5/10
Jesus, too, had five touches but completed just one pass, despite coming on at the same time as Sterling.
Sergio Aguero - N/A
The departing striker was given a few consolation minutes towards the end of normal time but barely got a whiff of the ball.