The sides were level at the interval, but the Oak Leafers bossed the second period, and after Caoimhin Hargan drilled home their second goal, they never looked back.
Tyrone started strongly, going three ahead, with Shea McDermott on target twice, but an intercept saw Dylan Rocks finish to an empty net for Derry’s first score in the 14th minute.
Ger Dillon added a couple of frees, with Davin McKeown and Lorcan McMurray responding for the Red Hands, and they went in at the interval deadlocked at 1-2 to 0-5.
But Derry made an explosive start to the second half, Hargan firing home his side’s second goal inside two minutes.
Tyrone responded with a Peter Colton goal, but the home side quickly regained control, with the wind now in their backs.
Hargan added a couple of points as they went six ahead, with Eamon Young, Rocks and Hargan also finding the target.
Tyrone were unable to find a way back into the game, hitting scores through Peter Colton, Sean Corry and Peter McGoldrick, without ever threatening to turn the tie around.
Derry, with five members of last year’s All-Ireland winning team on board, saw the game out comfortably, with Young, Cathair McBride and Rocks hitting scores to make it an eight-point margin.
They meet Armagh in next weekend’s final at O’Neill’s Healy Park, Omagh.
Derry scorers: C Hargan, D Rocks 1-2 each, E Young 0-4 (2f), G Dillon 0-3 (3f), C McBride, D McGuckin, C McNally 0-1 each.
Tyrone scorers: P Colton 1-3 (0-1f, 0-1m), S McDermott 0-2 (2f), L McMurray, D McKeown, S Corry, P McGinley, P McGoldrick (f) 0-1 each.
Derry: J McCloy; C McNally, R Canavan, R Collins; L Grant, C O Mianain, D McGuckin; J Sargent, C McBride; E Young, G Dillon, C Hargan; C McCullagh, R Biggs, D Rocks.
Subs: G McIvor for McCullagh (47), P Haran for McNally (50), K Mullan for Collins (55), C Rocks for Dillon (59)
Tyrone: O Watson; P McGinley, P Goodman, E Conway; S Corry, D McKeown, A Quinn; E Donaghy, P Donaghy; P Colton, J Concannon, S Og Teague; L McMurray, S McDermott, L McGeary.
Subs: E Mansell for McGeary (43), P McGoldrick for Teague (46), D Devlin for McDermott (48), J Mulgrew for Colton (54), M McNamee for Quinn (60)
Referee: P Faloon (Down)
