But man-of-the-match James Anderson proved the difference taking all four wickets needed for England on a pulsating final day.
The first Test in Nottingham will go down as one of the greatest matches in cricket history, and also one of the most controversial.
Australia were left to rue batting collapses in both innings, bad luck with DRS and Stuart Broad's disgraceful not out call in England's second dig.
Quick Single: day five WRAP
In the most morale-sapping ending imaginable, Haddin was given out caught behind off Anderson (5-73 and 10 for the match) despite being given not out by umpire Aleem Dar.
HotSpot showed a slight feather on Haddin's bat.
England jumped around in jubilation, before word even came down from the third umpire for Dar to overturn his decision.
Anderson didn't originally go up, but England captain Alastair Cook and keeper Matt Prior were confident.
"We always take a little bit of time discussing it. It's a bit of a team tactic just because obviously emotion and getting any wicket at any time you think it could be out. But you've got to give yourself five seconds thinking. Matty and I were 99.9 per cent certain he nicked it," said Cook, who took all the other catches off Anderson on day five.
Australian captain Michael Clarke said his team had no complaints that such an epic encounter was decided by players and 17,000 fans looking at a video screen.
"Times have changed, haven't they? The system is consistent for both teams," he said.
Australia were looking to exorcise their demons from their horror two-run loss to England at Edgbaston in 2005, which played out in eerily similar circumstances.
On that fateful day at Edgbaston in '05, Michael Kasprowicz and Brett Lee put on 59 for the last wicket to get within two runs of chasing down 282 - before Kasprowicz contentiously gloved one behind.
But instead of revenge, the nightmare continued.
England took a 1-0 Ashes series lead for the first time since 1997.
However, the last time England won a first Test and went on to win a series was back in 1986-87, suggesting all is not lost for an Australian side that fought bravely to the death.
"All Australians would have loved to have seen a different result but - you talk about Test cricket - you're not going to get many better Tests than what we have just seen," Clarke said.
"We've probably proved to a few people that we're here to compete.
"I'm disappointed that we couldn't get over the line ... but I hope we've earned a bit of respect by the way we've played.
"We're here to win the series."
Australia had resumed the final day with 137 runs needed and four wickets in the bank.
Haddin played the innings of his career to score 71 and guide Australia out of deep trouble - but in the end, Anderson proved the difference.
"He deserves a lot of credit for fighting so hard and there is probably no one in the changeroom now more disappointed than Brad," Clarke said.
"And then the other guys that batted with him did a fantastic job as well."
Pattinson (25no) came to the crease under all sorts of pressure but, like Ashton Agar did in the first innings, the No.11 batted like his life depended on it.