Wie had led going into the final round past year but a four-putt double bogey on the par-five fifth floored her and Inbee Park won with a then course-record at the New Tanjong Course of 64.
Michelle Wie "holed the best putt of my career" to win the Women's World Championship in Singapore - her first victory since the 2014 US Open.
Ko was briefly in the chasing pack, moving into a share of third at one point after carding five birdies and an eagle through her first 10 holes.
A missed short birdie putt on the 16th was "the kick up the butt" Wie needed to look for something special over her closing holes, and after seeking counsel from Holloway one final time, the American made her mind up and committed to her task.
"'That was a Solheim fist pump, '" Wie, who quoted last week's LPGA Tour victor, Jessica Korda, said after drilling the 35-footer from the fringe for her first W since the 2014 U.S. Women's Open and punching the air with her clenched right hand.
Danielle Kang, last year's Singapore victor, parred her last 14 holes and was unable to drain a longer birdie putt on the last to miss out on a playoff as she closed with a 70.
"I'm just really proud of myself for pulling myself out of it", she said. She shot a 1-under-par 71 but still had a 15-foot chance on the 72nd hole to make birdie and get into a playoff with Michelle Wie.
A week after Jessica Korda won in Thailand, younger sister Nelly will aim to make it back-to-back LPGA Tour wins for the Korda household.
WHITE HOUSE STAFFING: Spokeswoman says McMaster 'isn't going anywhere'
The Thursday report suggested that McMaster will soon be replaced by Ford executive Stephen Biegun, who served in the George W. He later pleaded guilty to lying to the Federal Bureau of Investigation about those interactions.
"That's a pretty cool stat and I'm pretty proud to be part of it", said Wie.
Wie thanked her parents, sponsors and fans for sticking by her in the nearly four-year wait for a title victory, but saved her greatest appreciation for caddie Matt Holloway, who she said had played a key role in helping her stay focused in the chase.
After a ideal drive, she hit an even more flawless approach and had a 15-foot try for a birdie to force a playoff. I just want to keep rising.
Brooke Henderson had a bogey-free 65, matching Korda for the low round of the day, to join Minjee Lee (68) in a tie for third at 11 under after an extraordinary display with the putter.
"I wanted to win really badly, especially after what happened a year ago, I had some unfinished business".
"I felt good. I hit it really close. It definitely hurts, but that's golf", she said.
But it was the five gains she made on the more hard back nine which rocketed her up the standings and she is now in prime positon to claim a maiden LPGA title.
"I had nine putts on the back nine, which is really awesome", Henderson said. I called him in, I was like, "Yo, Matt, you've got to help me read this putt". "I kind of came with a slight chip on my shoulder in the morning".