The 15-year-old, playing for KC Gandhi Higher Secondary School, reached the gigantic score in just 323 deliveries with a jaw-dropping strike rate of 312.38 in the game against Arya Gurukul in the Bhandari Cup inter-school tournament organised by the Mumbai Cricket Association (MCA).
In the course of his awe-inspiring innings, which lasted 395 minutes, Dhanawade smashed a whopping 129 fours and 59 sixes.
The epic knock ended when his school declared at 1465 for three at stumps on day two, which is also a world record. His school went past Victoria's 1107 against New South Wales made way back in 1926.
The 10th-standard boy is a ward of experienced MCA coach Mobin Sheikh and the only child of an autorickshaw driver.
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The mammoth score was in reply to their rivals' paltry score of 31 all out in 17 overs, at the Vaylengar ground at Kalyan in neighbouring Thane district.
Dhanawade, who was unbeaten on 652 last evening, thus became the world's highest-ever individual scorer in all forms of cricket.
"Dhanawade is with me from the age of six. His feat would give a strong boost to cricket in this area. We have lot of talent in and around Kalyan but lack of proper facilities has hampared it.
"Today (former India captain and MCA Vice President) Dilip Vengsarkar came and promised an academy here if he is provided with the ground and our local MLA promised to provide him wherever he wanted it," Sheikh told PTI.