The 2014 Asian Games team gold medalist thrashed Camilo Cardona of Colombia 143-138 in a one-sided contest to set up a clash against local challenger Stephen Hansen in the final which will be held Saturday.
Laxmirani gave India a second medal hope in the individual section as she will take on Misun Choi of Korea in the bronze medal play-off in recurve.
After her teammate and former world number one Deepika Kumari crashed out in the first match of the day, Laxmirani kept the Indian flag high.
However top seed Shih-Chia Lin of Taipei denied Laxmirani a final berth by securing 6-4 win in a hard-fought battle.
Locked 2-2 after second set, Lin shot a bull's eye in the third to clinch it 28-26 and open up a decisive 4-2 lead which saw her through as she levelled the next two.