Devon Conway and Rachin Ravindra smashed rapid unbeaten centuries to set up New Zealand's successful pursuit of a 283-run victory target, which came with 13.4 overs to spare.
It was a rematch of the heart-stopping 2019 final at Lord's in which England were declared winners via a now-scrapped boundary countback rule after the contest had ended in a tie.
Ravindra's unbeaten 123 off 96 balls, studded with 11 fours and five sixes, earned the 23-year-old player-of-the-match award on his World Cup debut.
Electing to field on Thursday, New Zealand's bowlers restricted their opponents to 282-9, a modest total considering the firepower in England's usually formidable batting lineup.
England's batters did not really fire but Joe Root (77), Jos Buttler (43) and Jonny Bairstow (33) provided some resistance.
However, England could not string together enough partnerships and kept losing wickets at regular intervals.
Matt Henry claimed 3-48 for New Zealand, while their three spinners shared five wickets on a hot afternoon at the Narendra Modi Stadium.
All 11 England batters made double figures -- the first time any side have managed that in ODIs -- but it was a patchy batting display overall.
"Very much outplayed by New Zealand and a tough defeat to take," Buttler said.
"I thought we were well below-par. We were aiming for somewhere around 330 and the pitch somewhat played better under lights."
New Zealand lost Will Young for nought in the first over but Conway, who made a career-best 152 not out, and Ravindra immediately turned the heat back on England with their free scoring.
The left-handers appeared to be competing with each other to reach the 50-mark -- both getting there in 36 balls in the end.
Conway brought up his hundred in 83 balls.
Ravindra, who collaborated in an epic unbroken 273-run partnership with Conway, took one delivery fewer to notch up his maiden ODI hundred in his memorable World Cup debut.
"Obviously, a fantastic partnership between Rachin and Devon," Tom Latham, who led New Zealand in the absence of Kane Williamson, said.
"Probably the most pleasing thing was Devon and Rachin just reacted to what was being bowled.
"Rachin played a fantastic innings and (we are) proud of him."
New Zealand rested regular captain Kane Williamson (knee) and fast bowler Tim Southee (thumb) to give them more time to recover from surgery.
England rested Ben Stokes, who is nursing a minor hip injury.