For Senegal, who lost to Algeria by the same scoreline in the group stage, the long wait for a first continental crown goes on as coach Aliou Cisse, the captain of the 2002 runners-up, again fell short in the final.
It was the first title-decider to feature two African coaches since 1998, with Algeria boss Djamel Belmadi completing a whirlwind 12 months at the helm after inheriting a side that failed to make it out of the group stage two years ago.
With defensive rock Kalidou Koulibaly suspended for Senegal, Salif Sane deputised at the back and Ismaila Sarr was recalled in attack, while Belmadi kept faith in the same side that overcame Nigeria with an injury-time free-kick from Riyad Mahrez.
Senegal had understandably feared the absence of Napoli star Koulibaly, banned after two bookings in the knockout rounds, although the towering Sane was desperately unlucky as Algeria grabbed the lead with scarcely a minute played.
Henri Saivet, who missed a penalty in the 1-0 victory over Tunisia, tried to catch Rais Mbohli out with a free-kick while Mbaye Niang fizzed a powerful drive just over as Senegal gradually showed signs of life before the half ended with both sets of players embroiled in a scuffle as they headed for the tunnel.
Senegal thought they had won a penalty on the hour when Cameroonian referee Alioum Alioum pointed to the spot for a suspected handball by Adlene Guedioura, but the official reversed his decision after a VAR review.
Niang rounded an advancing Mbohli after a searching ball through from Cheikhou Kouyate but the forward sliced wide of the target from a tough angle, with the Algeria 'keeper then acrobatically tipping over a rasping drive from Youssouf Sabaly.
The Desert Foxes started to look jaded as Senegal brought on fresh legs in Krepin Diatta and Mbaye Diagne, but Youcef Belaili nearly made it 2-0 when his cross brushed the head of a defender and skimmed the roof of the net.
Good evening! Welcome to the Live Updates from the African Cup of Nations Final between Senegal. So who will it be tonight? Will it be the Lions of Teranga who are looking to win a first-ever continental crown, under the guidance of Aliou Cissé. Or Algeria, who needed a stunning late free-kick from Riyad Mahrez to book their place in the final. Les Verts last won the Cup of Nations in 1990 on home soil. As ever, we have you covered at beIN SPORTS, with Live commentary and goals as they go in from the game. Yalla! Let's go!