Croatia has never beaten France, losing the last Nations League encounter and the 2018 World Cup final by the same score of 4-2. It was also beaten 2-1 in the 1998 World Cup semifinals.
Antoine Griezmann even passed up the chance to double his tally late on by allowing substitute Olivier Giroud to take a penalty for France's fourth goal.
More than 100,000 people thronged the square to hail 'Vatreni' led by captain and World Cup Golden Ball winner Luka Modric.
Crowds began converging early Monday on the Champs-Elysees, the gathering point for all national celebrations.
The scoreline — France scored four to Croatia’s two — might suggest a stroll for Le Bleus but it was anything but.
On the final whistle applause from tens of thousands of Croatian fans rang out through the capital's main Jelacic square as many lit flares and set off firecrackers.
France are world champions for the second time as Les Bleus ran wild while Croatia's energy reserves ran dry to win a thrilling final.
The bells of Notre Dame cathedral in central Paris also rang out in the immediate aftermath of the game to mark the triumph.
Deschamps becomes only the third man to win the World Cup as both a player and a coach after leading France to their maiden title in 1998 as captain.