It was 1988 all over again as the Hatters came from a goal behind to win a major trophy at Wembley to lift the Johnstone's Paint Trophy in front over 40,000 delirious Town fans.
It looked as though the Hatters were in for a long afternoon when Gary Hooper put Scunthorpe ahead.
But back came the Town and they levelled when Chris Martin slotted home Tom Craddock's pass to equalise.
It got better for the Hatters in the second period when Craddock turned from provider into goalscorer to fire the Town ahead.
With the trophy in touching distance, Scunthorpe broke the Town's hearts with an equaliser with two minutes later but not to be denied, an extra time winner from substitute Claude Gnakpa was enough to seal a dramatic victory in a sensational final.
Hatters manager Mick Harford was forced in three changes from 4-2 defeat against Rotherham United for the Town's first appearance at the new Wembley and their first visit to the home of football for 15 years.
Cup-tied quartet Ian Henderson, Mark Bower, David Livermore and Kevin Gallen were ruled of out of the big day after featuring in earlier rounds of the competition.
Coming into the starting XI in their place was Rossi Jarvis, Ed Asafu-Adjaye and Michael Spillane.
The bench was strong too, with places for the experienced trio Sol Davis, Sam Parkin and Ian Roper.
Scunthorpe United manager Nigel Adkins made two changes to his side that beat Brighton and Hove Albion 3-0 in their previous fixture.
The League One high-fliers brought back captain Cliff Byrne and Grant McCann back into contention replacing Andrew Wright and Liam Trotter respectively.
In attack they boasted one of the Football League's most prolific strike partnerships in the shape of Gary Hooper and Paul Hayes who had netted 45 goals between them so far this season.
As expected the atmosphere inside the ground was fantastic boosted by 40,000 Luton supporters decked out in black, white and orange.
As the match began in carnival style, Scunthorpe kicked-off sporting their traditional all-maroon strip kicking towards the massed ranks of Town fans in full voice.
The Hatters were lining with Asafu-Adjaye at centre half with George Pilkington and Spillane at right-back and Tom Craddock lone in attack supported by Chris Martin and Rossi Jarvis on the left and right wings.
As both sides settled down, Scunthorpe began well on top, dominating possession from the first whistle and the Town had to be thankful for a last ditch tackle by Lewis Emanuel to deny Hooper a run at goal after three minutes.
The Iron were looking confident going forward, always looking to Hooper and his touch released Matt Sparrow in on goal after five minutes but his snap-shot from 10 yards was parried away well by Dean Brill.
But the Town were getting into the game slowly but surely, and a left-wing free-kick from Kevin Nicholls on seven minutes had to be collected by Scunthorpe goalkeeper Joe Murphy with Craddock looking to tap in any rebound.
The Hatters though had their first chance of the game on 10 minutes when a vicious in-swinging corner from Nicholls almost brought the first goal of the game.
The skipper's left-wing flag-kick was flicked on at the near post by Scunthorpe defender Marcus Williams which found its way to Chris Martin.
The striker hooked his shot goalwards but saw his first shot saved by Murphy and his follow-up cleared off the line by Krystian Pearce.
A minute later back came Scunthorpe and their Arsenal loanee Henri Lansbury fired well wide of Brill's target.
On 13 minutes the North Lincolnshire outfit warmed the gloves of Brill for the second time when McCann arrowed a free-kick from 20 yards straight at the Town keeper.
But the Hatters were not let off the hook a minute later when Scunthorpe took the lead.
A long clearance from Murphy was nodded on by Hayes into the path of his partner in crime Hooper.
The United striker ran with the ball enabling him to beat George Pilkington before drilling a shot hard and low beyond Brill for his 30th goal of the season.
The Town were living dangerously and in were in threat of going further behind and only a superbly-timed interception from Pilkington denied Hooper on 20 minutes after the striker had latched onto another flick-on from Hayes.
Further danger followed McCann's resulting corner when somehow Nicholls flung himself at Lansbury's fierce drive to head the ball over the crossbar.
The Hatters though began to work themselves back into things again, and a superb move that started down the left-flank with Chris Martin saw Asa Hall have a shot deflected behind after the midfielder was found by a lovely touch from Jarvis.
But back came Scunthorpe and on 26 minutes Brill was called into action again to turn to a shot from Iron left-back William around the goalkeeper's left-hand post.
Referee Phil Crossley had been anonymous in the opening half hour until he booked Nicholls for a crunching tackle on McCann much to the annoyance of the Iron players.
There was no doubt the Hatters nerves had calmed down and a superb move saw them grab an equaliser on 32 minutes.
A brilliant cross-field pass by Hall found Craddock on the left touchline. The former Middlesbrough striker took a touch before looking up and spotted Martin running into the Scunthorpe penalty area.
Craddock's left-foot pass was inch-perfect for the on-loan striker who nodded the ball down before beating Murphy with a cool finish from 12 yards for his 13th goal of the season.
Cue pandemonium in the east end of Wembley as 40,000 Hatters fans were sent into raptures.
The match certainly had died down slightly on the pitch following the Town goal but McCann flashed a left-foot well wide of the target from long range just as the masses of Town fans burst into song.
With two minutes to the break, Spillane flicked on a Nicholls' free-kick goalwards but the effort lacked power and it was easy for Murphy to pick out of the sky.
After two additional minutes at the end of the first half, referee Crossley blew for half time with the scores level.
HALF TIME: LUTON TOWN 1-1 SCUNTHORPE UNITED
The Hatters were the first team back onto the pitch for the second half and kicked-off kicking towards their supporters in the east end of Wembley.
There were no changes for either side at the interval as referee Crossley blew his whistle to signal the start of the second crucial period.
And it was the Town that had the first chance of the half, four minutes in, when a lovely move saw Jarvis head down a deep left-wing cross from Emanuel into the path of Martin.
But the goalscorer tried an acrobatic scissors kick that he failed to connect properly with and, to the relief of the Scunthorpe defence, the ball drifted wide of the target.
Scunthorpe reacted well, however, and a Lansbury shot on 50 minutes was well blocked by Pilkington.
Lansbury was showing his Premiership potential, popping up on both flanks, and the on-loan Gunner came close again four minutes later with another shot that was blocked.
This time by Nicholls - who had made up yards of ground to deny the midfielder - slid across the turf with a well-timed block.
Then, after the Town had failed to clear McCann's resulting corner, Pearce flicked Lansbury's cross from the left with the outside of his wide of Brill's right handupright as the Iron looked to get on top.
After 15 minutes of the second half the Hatters were being held in their own half as Scunthorpe tried to find away through in search of a second goal.
On 64 minutes it was Iron manager Nigel Adkins who made the first substitution of the afternoon replacing Kevan Hurst with Sam Togwell.
Three minutes later referee Crossley got his book out for the second time of the afternoon to show a yellow card to Martin for an off-the-ball incident. It was the Town goalscorer's 10th caution of the campaign ruling him out of the league matches with Chesterfield and Barnet.
But the Hatters took the lead with 20 minutes left with another goal of real quality.
Martin stood a cross up to the back post that was brilliantly reached by Hall who was able to find Craddock on the edge of the Iron penalty area.
The £80,000 signing took one touch to control the ball on his chest before expertly rifling a low shot beyond Murphy that crept into the bottom corner to send the Town fans, players and management into raptures.
Wembley was a sight to behold as 40,000 Hatters fans were in full voice as the attendance of 55,378 was confirmed.
Scunthorpe made their second change of the match introducing Martyn Woolford for Matt Sparrow with 13 minutes to go.
At the same time Gnakpa was stripped ready to come on for the Hatters but he then sat down and changed back into his tracksuit.
The substitution almost worked wonders for the Iron three minutes later when Woolford got the better of Spillane to send a low enticing cross across the face of the Town goal.
Lansbury was the one who was on to it quickest and it looked as though he had the simplest of tasks to knock the ball into the net.
However, the midfielder saw his fierce shot cannon back off of the crossbar much to the relief of the Town defence.
With five minutes left Mick Harford did make the substitution he was intending to make when Gnakpa replaced the goalscorer Craddock, and at the same time Scunthorpe introduced Andrew Wright for Pearce.
As the Hatters desperately tried to defend their lead, however, Scunthorpe broke their hearts with a wonderful goal two minutes from time to level the scores.
Hayes ran across goal and was tackled by Spillane but the loose ball broke free to McCann on the left-edge of the penalty area, 20 yards from goal.
The Northern Ireland international needed no hesitation to swing a curling left-foot shot over the stranded Brill into top corner of the net to send the Scunthorpe support into delight.
Three additional minutes were added at the end of the 90, and the Town had a chance to steal the trophy with the last kick of the game but Nicholls curled his free kick straight at Murphy after the skipper had originally won the free-kick after being fouled by McCann.
That turned out to be the last kick as the referee blew for full time and with the scores equal 30 minutes extra time was next.
FULL TIME: LUTON TOWN 2-2 SCUNTHORPE UNITED
The atmosphere at the start of extra time was very subdued in comparison to the 90 minutes that preceded it but the Hatters fans nearly had a goal to celebrate two minutes into first half.
Nicholls sprayed a long-pass over the top looking for Gnakpa who beat the Scunthorpe offside trap.
However, the Frenchman lost his composure and Mirfin was able to cut out the danger and knock the ball behind for a corner.
The match was now swinging from end-to-end and Hooper blew a chance for the Iron a minute later after beating Emanuel and Pilkington but could only shoot tamely at Brill.
But as the game continued to flow, the Hatters got their noses in front for the second time of the afternoon five minutes into the first period.
This time, Gnakpa was not to be denied. A long ball from Keane split the Scunthorpe defence and after Williams and Murphy left the ball for each other, the Frenchman stuck out a right-boot to send the ball arching towards the net and over the line to give the Town a 3-2 advantage.
For the third time the 40,000 Town fans celebrated every inch as they did the two previous goals, reducing the 13,000 fans from North Lincolnshire into silence
HALF TIME IN EXTRA TIME: LUTON TOWN 3-2 SCUNTHORPE UNITED
All that separated the Town and the trophy was 15 minutes of football.
But Scunthorpe had other ideas but after a scrappy first five minutes into the second half of extra time, the Iron threatened when McCann won a free-kick on the edge of the penalty area but ballooned the resulting free-kick high and wide.
Back came the Town and a surging run from Keane through the heart of the midfield could have sealed the win but the Luton-born vice captain got in two minds and after finding Hall Scunthorpe were able to clear the danger.
Scunthorpe were desperately trying to get back on level terms and on 112 minutes Lansbury blasted a pass across goal that missed Hayes and Hooper looking to get on a touch on the ball turn it home.
Then, a minute later, Hooper worked a yard of space on the right-hand side of the penalty area to fire a shot goalwards that was blocked by Asafu-Adjaye.
There was a lengthily stoppage in play with five minutes to play when Mirfin had to be stretched off the Wembley turf after going up for a challenge with Gnakpa.
Once Mirfin had left the field of play to receive treatment, Scunthorpe were down to 10 men and the Hatters made their third and final change of the afternoon when Parkin replaced Jarvis.
With a minute to go Parkin's short pass to Keane found the midfielder with time and space to fizz a shot towards Murphy who did well to turn the ball around the post as the Town looked to put the game beyond doubt.
Just as the fourth official signalled four minutes injury time, Gnakpa strode into the Iron area only to be denied by a sprawling save by Murphy at his near post.
The unfortunate Mirifn was playing to further part in proceedings as he made his way on a stretcher past the Scunthorpe faithful.
Time was fast running out for the Iron as the whistled around Wembley from the Hatters faithful grew louder.
In the dying seconds Hooper almost got on the end of a knock down in the Hatters' penalty area but his control let him down as the ball bounced of his thigh and behind for a goal kick.
But that the closest Scunthorpe came to breaking the Town's hearts for a second time and when Crossley blew his whistle for the final time the Hatters had won the Johnstone's Paint Trophy.
FULL TIME IN EXTRA TIME: LUTON TOWN 3-2 SCUNTHORPE UNITED
The teams:
Luton Town: Brill, Keane, Pilkingon, Nicholls, Emanuel, Hall, Jarvis (Parkin 117), Asafu-Adjaye, Martin, Spillane, Craddock (Gnakpa 85).
Substitutes not used: Button, Davis, Roper.
Booked: Nicholls (29), Martin (67)
Scunthorpe United: Murphy, Byrne, Williams, Pearce (Wright 85), Mirfin, Sparrow (Woolford 77), Lansbury, McCann, Hurst (Togwell 64), Hayes, Hooper.
Substitutes not used: Lillis, May.
Booked: Wright (93)
Referee: Phil Crossley
Attendance: 55,378 (including 40,000 from Luton).
