The third-seeded Swiss superstar defeated Cilic 6-3, 6-1, 6-4 in his 11th final at the All England Club that lasted for one hour and 37 minutes on the Centre Court to clinch his 19th Grand Slam title.
It was for the first time that Federer won the Wimbledon title without dropping a set.
"I'll be gone again for the next six months if it keeps working out this fantastic when I come back," said Federer after his historic win.
The 35-year-old's previous Wimbledon win came in 2012. He then lost to Novak Djokovic in both the 2014 and 2015 finals. His first Wimbledon title came in 2003, and he won the next four after that.
The victory makes Federer the oldest man to win at the All England Club in the Open era, which began in 1968.
He has now moved clear of seven-time Wimbledon titlists William Renshaw and Pete Sampras.
With Federer's fifth crown of the year, the Swiss rises to No. 3 - his highest rankings position since August 2016.
His career title count now stands at 93, third on the all-time men's list, behind Jimmy Connors (109) and Ivan Lendl (94) and ahead of John McEnroe (77) and Rafael Nadal (73). (ANI)