Glaetzer defeated Britain's Jack Carlin 2-0 in the final with a powerhouse display on Sunday morning (ADET).
The 25-year-old eliminated defending world champion Denis Dmitriev of Russia and Frenchman Sebastien Vigier on his way to the gold medal clash.
“I have been wanting to pull that jersey on for so long, so to see the Australian flag raised above me was such a special moment,” Glaetzer said.
The 25-year-old had earned five top-six finishes at the World Championships since 2013, including the 2016 silver medal. He also finished just outside the medals at both the Rio 2016 Olympic Games (fourth) and the 2014 Commonwealth Games (fifth).
“I have finally backed up the speed, finally put the money where the legs are so to speak," he said. “We have worked so hard as a team for this and it was great to see a reward for it.”
Glaetzer's world championship run began with Rayan Helal (FRA) in the round 1/8, before dispatching reigning champion Dmitriev, who had reached the podium in each of the past five World Championships, in the quarterfinals.
In the semi-final, he then sent Vigier packing in two straight heats before showing his class in the final against Great Britain’s youngster Carlin.
“I had a fantastic race meet, each race was quite good, didn’t really mess up at all,” Glaetzer said.
“I normally make mistakes and get caught out, one mistake is all it costs at this level. But this time I didn’t and that was the key.
“I kept myself in a really good mindset, every single round I treated like the final. And I was so focussed on taking it one race at a time and all of a sudden I am in a final.
“So I had to block the thoughts out of winning it and keep focussed on what I had to do to win it.
“Just ripped it in my last two rides, gave it everything I had and I am the world champ.”