Baghdatis, from Cyprus, edged American Mardy Fish 6-4, 6-7 (7-9), 7-6 (7-5) by winning on his fourth attempt at match point. Both had issues serving -- each had seven double faults and neither was good on even half of his first serves -- but Baghdatis managed one more service break than Fish.
The match took nearly three hours.
Gasquet took an all-French semifinal in straight sets, ousting Julien Benneteau 6-4, 7-5. Gasquet broke Benneteau's serve four times.
Saturday's final will mark the first career meeting between Baghdatis and Gasquet. Gasquet will be looking for his sixth ATP title, but he hasn't won since September 2007. A win would give Baghdatis two titles in his last three tournaments.
The Medibank champion earns a check for $67,260.