The American world No 6 Pegula battled back from a set and a break down to record a gutsy 1-6, 6-4, 6-2 victory over her 52nd-ranked opponent from the Czech Republic.
Double Australian Open champion and world No 2 Sabalenka reached her second successive US Open final by seeing off another American, Emma Navarro, 6-3, 7-6 (7/2).
"I thought I was lucky to still be in it," admitted Pegula.
"She made me look like a beginner, she was destroying me and I was about to burst into tears, but it all came down to small moments. I don't know how I turned that around." Pegula has now won 15 of 16 matches on the US summer hardcourt swing, which saw a title in Toronto and defeat in the Cincinnati final to Sabalenka.
"It's a chance for revenge, but she'll be tough to beat," said Pegula, who has won just two of seven career meetings against the Belarusian.
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