Djokovic extended his winning streak since the US Open to 21 matches and will bid for his third Tour Finals crown when he faces world number one Nadal in the final at London's O2 Arena.
After losing out to Nadal in the race to finish the year top of the world rankings, world number two Djokovic has a golden opportunity to get a measure of revenge against the Spaniard.
"It was a very enjoyable match for me, it was my best performance at the tournament so far," said Djokovic yesterday.
"I don't think it's the right word to say I'm unbeatable. Nobody's unbeatable.
"Being in the moment and taking it one step at a time helps me keep my focus."
Wawrinka had enjoyed his best season over the last 11 months and, after advancing to the last four on his maiden appearance at the Tour Finals, the Swiss seventh seed was bidding to become the first debutant to reach the final since David Ferrer in 2007.