The Chipolopolo boys will now face Botswana in the finals on June 8.
Zambia scored their spot kicks through Thandi Mwape, Jack Chirwa, Mwila Phiri and Bruce Musakanya.
The defending champions Zimbabwe had their star man Khama Billiat having his effort saved while Admiral Musikwe sent his skyways.
Tendai Darikwa and Marvelous Nakamba hit the target but their efforts were not enough to save the warriors on the day.
It was sweet revenge for Zambia who have lost the last two finals to the Zimbabwe.
Coach Aggrey Chiyangi has parised his team for their resilience that saw them defeat a star studded Zimbabwe side.