Put in to bat, India were off to a poor start as both their openers Shikhar Dhawan and Rohit Sharma departed early. Dhawan scored just 8 while last match's centurion Rohit hit 11. (All BCCI images)
Suresh Raina missed a golden opportunity to get a big score in Mohali as he failed to convert a good start yet again. Mitchell Johnson was the best Australian bowler as he finished with 4/46.
Virat Kohli and Mahendra Singh Dhoni then steadied India's innings with a stand of 72 runs for the fifth wicket.
Mahendra Singh Dhoni kept his cool after Virat Kohli's departure and notched up his ninth hundred in ODI. He also became the first Indian to hit a century at PCA in Mohali.
The Indian skipper single-handedly took India to 303/9. He put on a 76-run stand with R Ashwin (28) for the seventh wicket.
Vinay Kumar gave India their first wicket when he removed in-form Phillip Hughes in the 13th over. Vinay finished with 2/50.
Adam Voges though started slowly but remained calmed even when the run rate was climbing. He scored an unbeaten 76 off 88 balls and involved in a 91-run stand with James Faulkner for the seventh wicket.
India were well placed with Australia needing 44 from 18 balls. But James Faulkner had a different plan. He hit Ishant Sharma for 30 runs in the 48th over - four sixes - to change the course of the game. He sealed the win with a huge six with three balls to spare and helped Australia take a 2-1 lead.