This is Norrie's second title in his sixth ATP final of the season after winning his maiden crown earlier this year in Los Cabos.
Badosa celebrated the biggest win of her career by falling face first to the court, both hands covering her face while the crowd cheered.
Britain's Cameron Norrie dominated Grigor Dimitrov 6-2, 6-4 on Saturday to book a title clash with Nikoloz Basilashvili at the ATP Indian Wells Masters.
Indian Wells 2021: Victoria Azarenka beats Jelena Ostapenko, books spot in final against Paula Badosa
Paula Badosa defeated Ons Jabeur in straight sets 6-3, 6-3 to reach the final.
Ons Jabeur's win guarantees she will move into the top 10 in the world rankings for the first time in her career.
Indian Wells 2021: Cameron Norrie crushes Diego Schwartzman, Grigor Dimitrov holds off Hubert Hurkacz
The 26-year-old Norrie, who will supplant Daniel Evans as the British No. 1 when the new rankings come out on Monday, is enjoying a career best season.
Dimitrov will face Polish eighth seed Hubert Hurkacz, who rolled over Russian Aslan Karatsev 6-1, 6-3 earlier on Wednesday, in the quarter-finals.
Zverev advanced to the fourth round, coming from behind in both sets to beat two time Olympic gold medal winner Murray 6-4, 7-6 (7/4)
World No 2 Medvedev moves on to the round of 16 where he will face Bulgaria's Grigor Dimitrov, who cruised past American Reilly Opelka.
Indian Wells 2021: Murray rallies to beat Alcaraz; Swiatek donates prize money on World Mental Health Day
Andy Murray will next face either third-seeded Alexander Zverev or American Jenson Brooksby.
Murray, who is preparing for the Indian Wells, left his tennis shoes underneath his car to dry out overnight — but they had vanished when he returned in the morning. His wedding ring was tied to his footwear.
Djokovic is a five-time champion at Indian Wells, lifting the title in 2008, 2011, 2014, 2015 and 2016.
It is the latest stop on a remarkable season for Raducanu, who only made her WTA Tour debut in June.
Officials gave no reason for Barty's decision to pull out of next month's women's draw which was already suffering from the absence of several top-ranked players, including Naomi Osaka and Serena Williams.
The withdrawal was announced by the official Twitter feed for the hard-court tournament at Indian Wells, which is scheduled for 4-17 October after twice being delayed during the coronavirus pandemic.
The event will be played 4-17 October at the Indian Wells Tennis Garden.
In separate schedule updates, the WTA and ATP said the China Open in Beijing and the Japan Open in Tokyo had both been scrapped.
Tournament directory Tommy Haas said organisers will decide on attendance limits, social distancing, separate seating sections for vaccinated fans and face coverings based on whatever guidelines are in place this fall.
Indian Wells in California is traditionally the first Masters event of the year on the men's tour and runs alongside a women's tournament.
Coronavirus Outbreak: Tunisian tennis player Ons Jabeur calls for resumption of season at Indian Wells in March 2021
Tunisian Jabeur, the first Arab woman to reach the quarter-finals of a Grand Slam, said resuming the season later this year was not ideal as it would not be fair when calculating ranking points.