The Germans scored a combined total of 8178.0 – between three riders – to win the gold medal well ahead of the United States in second place with 7747.0. The Americans won only their second silver medal in the event adding it to their seven bronzes.
Great Britain rounded off the podium, finishing in third with a total of 7723.0, and adding to their gold from London 2012 and the silver in Rio 2016.
A key member of the German team, Isabell Werth on Bella Rose 2, became the first athlete to win seven gold medals in equestrian, her 11th Olympic medal in total.
"It feels good, super. We can keep it. No, I'm really happy and proud about the seventh gold medal. It's a cool feeling," Werth said about her achievement.
Werth earned the second-best individual points behind teammate Jessica von Bredow-Werndl, who was the top rider on the day with 2785.5. Dorothee Schneider, the third member of the team, added 2652.0 to their score.
"All in all, it was beautiful to ride her (TSF Dalera). She's amazing. She's always giving her very best for me, and she was so focused. And she's a real dancer," Von Bredow-Werndl said.
Germany's hopes of adding to their impressive tally at the Olympic Games was riding on Von Bredow-Werndl's performance in the final ride. Von Bredow-Werndl relished the challenge and produced the highest score of the day, adding to that of her teammates to claim the victory.
"I was just very grateful when these two ladies came back with their high scores that the pressure was a little bit lower for me, that I didn't need to make a personal best or something like that to win gold," Von Bredow-Werndl said.
"But I always want to give my very best, and we did it again, and Dalera also gives her very best. So, it's good to have such a strong partnership with your horse."
Meanwhile, Steffen Peters of the United States, at the age of 56, became the oldest Olympic medallist for the United States in equestrian. He won bronze in this event in Atlanta 1996 and Rio 2016.
The Associated Press contributed to this report.