India were chasing a near-impossible target of 350/4 put up by the Australians but Tendulkar changed the mood of the game with a cracking innings that was studded with 19 fours and four sixes.
India though lost too many wickets towards the end including that of Tendulkar as Ricky Ponting's men pulled out a comeback just when India looked like running away with the game.
This win means that the visitors have a 3-2 lead in the series.
Chasing Australia's mammmoth 350 for four built mainly around Shaun Marsh's 112 and Shane Watson's 93, the Indians rode on Tendulkar's heroic 141-ball knock to come within sniffing distance of a remarkable win but the tailenders faltered under pressure to be all out for 347 with two balls to spare.
It was a remarkable exhibition of strokeplay by Tendulkar, who not only notched up his 45th ODI hundred but also became the first cricketer in the history of the game to cross the 17,000 run mark.
It was also the fastest century by an Indian against the Australians as well as the highest individual score against the visitors.
The jam-packed Rajiv Gandhi International stadium witnessed an extraordinary contest which saw as many as 697 runs being scored in a game where fortunes fluctuated from one end to the other till the very end.
The two teams will now travel to Guwahati for the sixth one-dayer to be held on Sunday.
Tendulkar was at his best from the onset as he smashed the Australian attack to all parts of the ground.
Opening the batting he first shared 66 runs with Virender Sehwag (38 off 30) and then put together a vital 137-run partnership with Suresh Raina who made a run-a-ball 59.
But Tendulkar's dismissal in the first ball of the 48th over, caught when he played the scoop shot at fine leg by a diving Nathan Huaritz unhinged the Indian innings as the tail-enders could not manage the required 19 runs in 17 balls.
Ravindra Jadeja (23) and Praveen Kumar (9) were run out, while Ashish Nehra fell for one as India slid to defeat from a healthy 299 for four in the 43rd over.
The Indian innings was struggling at 162 for four when Tendulkar was joined by Raina and their excellent stand for the fifth wicket brought India close to the doorsteps of victory.
Except for Sehwag and Tendulkar the Indian top order failed as Gautam Gambhir, Yuvraj Singh and skipper Mahendra Singh Dhoni departed cheaply to leave Tendulkar with the huge task of guiding India past the finishing line.
Tendulkar who had been outstanding in the field while most of his other teammates fumbled when Australia batted, got the ideal partner in young Raina.
The two took India from a difficult 162 for four in the 24th over with their century stand with Tendulkar guiding his younger partner. They were separated only when India needed 52 runs from 45 balls, Raina top-edged a sweep to keeper Graham Manou.
The hosts asked for the batting Power Play when 46 were needed from the last six overs with four wickets in hand after Harbhajan Singh made a first ball duck. But to add to India's misery Tendulkar started to develop leg cramps.
India needed 31 runs from the last 24 balls and then 19 from 18 when Tendulkar and Ravindra Jadeja departed at the same score. The equation was brought down to 16 from 12 when Ashish Nehra was out.
The hosts needed eight of the last over and got four of those before Praveen Kumar was run by Hauritz after the right-hander went for the second run.
Tendulkar who notched his fourth 150-plus innings in his 435th ODI, played with a lot of freedom once he reached the landmark of 17,000 runs.
Tendulkar and Sehwag were going great guns before the Delhi dasher top-edged a hook off Ben Hilfenhaus to fine leg.
Ponting's decision to bring in Clint McKay into the attack in place of the expensive Bollinger worked as Gambhir was caught at third man.
plus where the hell is irfan pathan, we need a all rounder are we the only team in the world now without a good full time all rounder???
Great match but only for the batsman of Australia and MR. Sachin Ramesh Tendulkar.None of the bowlers of team India shows any good temperament till the end. Young players have there chance but never doing well in pressure situation such kiddies mistake cost the match.Tendulkar trying well but rest of the batsmen did not support him at all (Except Raina).I think Selector should call Rahul Dravid back for 50:50.He can carry through innings well. It is rethinking time. To compet against greatest team like Australia, Pakistan, South Africa we need experience in the middle.
Rahul is scoring every day in all forms of the game,in his current form he can play the World Cup in 2011.So Dhoni rethink.
Great match and fantastic innings from the little master blaster
. Its sad we lost the match. Three cheers to oz fielding especially the run out of praveen - what a throw from long-on....
Indians need to learn these skills from oz if they want to be no 1.
There was a joker on this forum who wanted Sachin to retire after the second onedayer. Where is he now? Those who question legends like Sachin, have at best played gulli-cricket with friends, at best they were 12th plan for their school team. So i think it is best for us to ignore these "jokers".
Besides that, what a game of cricket guys? At the end of the day, the game won, and what entertainment for the public. Forget who won or lost - we got to witness one of the greatest batsmen in flow. Please let us not comment on who should play or who should not, on whether Irfan should be called or that Munaf played for Australia - lets grow up guys. If we knew more on who to select, we would not be where we are!Time and again, this forum has "jokers" who leave comments and cry like lollipop sucking kids on the street wearing a torn chaddi. International cricket is more than that - and more, it is just a game. Australia played well. India fought well - too bad we lost. Lets leave it at that! And lets cherish the little master and his exploits....
Im unhappy at the way that many still doubts sachin's commitment in the game. Hell!! he was the one person for which the game was worth watching . I remember those knocks of sachin and even today I watched the game only because of sachin , like many a cricket fanatic of the early and mid 90's i worshipped sachin, grew up on his shots. Now I dont find any interest, somehow one has that charisma that sachin has still now.
Indiawill only realise the worth of sachin when he will retire from the game, even the once migty ausies are no more mightier. There is no one to replace bevan, forget Mc. Grath and Warne, or gilchrist.