Paes, contesting his 25th season on the ATP World Tour, and the Swiss ace defeated defending champions Daniel Nestor and Kristina Mladenovic 6-4, 6-3 in the final.
Interestingly, it was 16th career Grand Slam title for Hingis while Paes won his 15th title.
It was third Australian Open mixed double title for Paes, who won with Martina Navratilova in 2003 and with Cara Black in 2010.
Paes also paid tribute to his team behind the scenes.
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"There are a few people who got us together. All you guys back home who put us together to win our first Grand Slam, thank you," the 41-year-old said.
Hingis, who has seven Australian Open trophies including three singles titles in her glittering career, joked,"Martina (Navratilova) - thank you for lending me Leander!" as Navratilova who watched the match from the stands smiled.