Team Mugen rider John McGuinness set a new lap record for electric bikes to claim his 22nd TT win and move within four victories of Joey Dunlop's record.
The Morecambe racer completed the one-lap sprint of the 37-mile (60km) course at an average speed of 119.279 mph.
The 43-year-old said: "It is nice to get in the winners enclosure for my 22nd win. I am over the moon."
Bruce Anstey made it a one-two for Team Mugen, finishing 4.02 seconds down on team-mate McGuinness.
The New Zealander, who won the event's opening Superbike race, said: "I was trying so hard and really enjoyed it. The bikes are heavy but they handle so well."
Anstey trailed McGuinness by five seconds at Ramsey before cutting it 2.5 seconds at the Bungalow.
"This race may not be everyone's cup of tea but the technology is so impressive and the bike is really fun to ride," said McGuinness.
"You used to be able to keep your flask and sandwiches handy on the tank but not any more. You really have to be on it and make sure you get your racing lines right.
"We are not a million miles from breaking the 120mph barrier, which is crazy."
Lee Johnston, who claimed his first TT podium finish in Tuesday's Superstock race, was one minute 14 seconds behind Anstey in third and 21 seconds ahead of Victory Racing team-mate Guy Martin.
Robert Wilson and Michael Sweeney were fifth and sixth.