At Sydney, January 2, 3, 4, 5, 6. Australia won by ten wickets. Play did not start on the first day until four o'clock because of heavy morning rain. Australia brought back Hogg for Maguire, Pakistan playing the side which had drawn in Melbourne. In the hour and a half possible on the first day Pakistan, having been put in, lost Mohsin and Qasim, both to Lillee for 61. Next day Lillee and Lawson both bowled well and it was only thanks to the good batting techniques of Mudassar, Zaheer and Salim that Pakistan reached 278.
After close of play on the second day, Chappell announced in a television interview with his brother Ian, that he would retire from Test cricket at the end of the match. Later that evening Lillee also decided that this would be his last Test match, confirming his decision next morning, while later in the match Marsh said he would not be available for Australia's forthcoming tour of the West Indies.
After losing three early wickets Australia were taken to a strong position by Chappell and Hughes. Chappell's 182 just about summed up his career; it contained his full array of strokes, most notably his his inimitable on-drive. He batted for 526 minutes and hit seventeen 4s, during which time he passed Bradman's aggregate of 6,996 runs to become Australia's leading run-getter. Faced by a deficit of 176 Pakistan were soon in trouble, losing Mohsin to a slip catch by Chappell. This was Chappell's 121st catch in Test cricket, one more than Cowdrey's previous record. Pakistan never recovered and, in spite of a solid 60 by Miandad, they could leave Australia only 35 to win. Lillee took the last four wickets to finish his Test career with 355, the exact number of March's Test dismissals behind the wicket. The attendance for the match was 69,876.