Haile Gebrselassie's heir apparent, the world junior 5000m champion, stayed on the shoulder of favourite Ali Saidi-Sief until the final bend before sprinting home in 13.35:49.
Moroccan Brahim Lahlaf took bronze in a messy race that was far slower than many predicted.
This should have played into the hands of 1500m man Saidi-Sief, but when Wolde made his move the Algerian had nothing in the tank.
Lost
The 22-year-old Saidi-Sief had not lost all year until Saturday night.
He had switched from 1500m to the 5000m to avoid facing Hicham El Guerrouj - ironically, another red-hot favourite who failed to take gold.
Walde was clearly delighted.
"I didn't really think I could win as there were some great athletes in the race, especially Saidi-Sief," he said.
"But with two laps to go I started to prepare to kick and now I'm happy beyond limits."
Stretched
The race started extremely slowly and after a lap of virtual jogging, German Jirka Arndt stretched out and soon opened a 30-metre lead.
But the pack reeled him in within a further two laps and at the halfway mark all 15 athletes were bunched tightly together.
Saidi-Sief was never far from the front and nor were the three Ethiopians - Wolde, Dagne Alemu and Fita Bayissa - but nobody was prepared to make a sustained effort to increase the pace.
Lahlafi, the fastest man in the field this year, put in a couple of bursts but didn't appear to want to keep it up and the pack settled down for what they all then knew would be a last lap thrash.
Strung-out
Saidi-Sief got a jump by setting off 30 metres from the bell and immediately strung out the leaders.
But Wolde didn't panic and stayed on his shoulder until attacking during the last 200 metres to win going away.
Lahlafi said he was happy to get a medal but was surprised at the winner.
"It was too slow but I still thought it would be between me and the Algerian."
However, Bayissa, the bronze medallist in 1992 who finished fourth, was anything but shocked.
"I knew one of the three of us could win and it all went according to plan," he said.