The 22-year-old skip marched Scotland into the page one-two play-off with four wins from their last four round-robin games and that good form continued against Sweden's Margaretha Sigfridsson.
Comfortably beaten by Sigfridsson 9-2 in the round-robin stage, Muirhead gave the Swede's a taste of their own medicine as they ran out 9-3 victors to advance straight to the final, where they will meet Russia.
Sigfriddson's rink took the lead in the second end before Muirhead, alongside Vicki Adams, Anna Sloan and Claire Hamilton, finally made the breakthrough in the fifth to lead 3-2.
Sweden responded with a single in the sixth however there was to be no denying Muirhead who made a hit for four in the eighth and then took a steal of two in the ninth for victory.
And Muirhead, who beat Sigfridsson 8-2 in last year's European final in Moscow, is now gunning for a second successive title.
"I love these big games, we've trained so hard all season and this shows all our hard work is beginning to pay off. I don't really mind who we play in the final," said Muirhead.
"Our first goal was to get to the page one-two, and the next was to get to the final.
"Now I don't want anything else except that gold medal. We knew we were going to have to come out sharper than in the round-robin game.
"So I think that coming out and winning like that will play on their minds. Hopefully we will bring the same game to the final."
Sweden and Sigfridsson were upset by Anna Sidorova, the Russian and her team claiming an 8-6 win to reach the championship match.
Earlier Russia posted a 7-6 victory over Denmark and Lene Nielsen in the page three-four play-off.
Nielsen put Denmark 3-1 ahead in the third end only for Russia to fight back and make it 5-5 in the sixth courtesy of a nice draw by skip Sidorova.
Russia scored two to Denmark's one over the final four ends to win 7-6 with Nielsen set to battle for bronze with Sigfridsson.
The men's semi-final also took place at the same time as the women's matches in Karlstad with Norway's Thomas Ulsrud keeping the defence of his title alive.
Ulsrud's rink beat the Czech Republic 6-4 to book an all-Scandinavian final with home favourites Sweden and Niklas Edin while Jiri Snitil will play Rasmus Stjerne and Denmark for bronze.