Real's 3-0 win in the first leg proved too much for Atletico Madird to overcome as the reigning European champions progressed 4-2 on aggregate.
Real Madrid made it to the final of UEFA Champions League despite losing 2-1 against Atletico Madrid in their semi-final second leg on Wednesday.
The Spanish giants will face Italian outfit Juventus in Cardiff, Wales on June, 3 for the top tier European trophy.
Real's 3-0 win in the first leg proved too much for Atletico to overcome as the reigning European champions progressed 4-2 on aggregate.
Early goals from Saul Niguez and Antoine Griezmann, from a penalty, gave Atletico hope but Isco struck just before the break to leave the hosts with too much to do, taking Real through to a final against Juventus in Cardiff on June 3.
"We knew Atletico were going to start well and they had a bit of luck in scoring the two goals, but we knew that if we scored it would kill them," Cristiano Ronaldo told reporters.
"We're Real Madrid and we showed that we have more experience," he added.
Ronaldo's hat-trick at the Santiago Bernabeu in the first leg had given Real a huge advantage in the tie.
"No-one said it was going to be easy, but we achieved our objective which was to get through," said captain Sergio Ramos.
"I'm proud of this team for showing character when we were 2-0 down and go looking for the goal."
Real are now chasing a first league and European Cup double since 1958 and could become the first team to defend the Europe's biggest prize in the Champions League era, which began with the change in format in 1992.
"I'm delighted to be in a third Champions League final in four years," added Ramos.
Meanwhile, in UEFA's second tier Europa League, Manchester United are hoping to book a place at the final in Stockholm on May 24.
United currently lead Celta Vigo in the semi-final thanks to Marcus Rashford's brilliant free-kick earning them a 1-0 first-leg advantage in Spain.
In the other semi-final, France's Lyon will have to dig deep to overturn a 4-1 score line against Ajax Amsterdam to make it to Stockholm.
Both Europa League second leg semi-finals matches will be played on Thursday May 11.