The 37-year-old from Calcutta parred the final hole for a round of 67 and a 20-under-par total as he avoided a play-off with nearest rival David Toms.
"That was huge," said Atwal, whose win owed much to a stunning nine-under 61 in his opening round in Greensboro.
"I was really nervous over that [last] putt. My heart rate was probably 150."
Atwal, who lost his Tour card in July, began his final 18 holes with a three-shot lead.
His advantage was gradually eroded, and, at one stage, he shared the lead with six other players.
Atwal, though, birdied the 16th to regain the lead, and as he teed off at the 18th, Toms, who had birdied three of his last four holes for a 64, was alone in second and hoping for a slip-up.
However, Atwal, who had led or shared the lead after each of the first three rounds, was not about to wilt.
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He even had the courage to blast his approach to the last in the hope of hitting the spectators' tent that was positioned behind the green in order to get a favourable drop shot.
His plan worked perfectly. The ball hit the base of the tent, Atwal was awarded a drop and he made no mistake with his up-and-down, holing a seven-footer to earn the $918,000 (591,000) top prize and a two-year Tour exemption.
"I'm pretty sure it's going to be huge back home," Atwal said.
"My in-laws called my wife and said the coverage was just unreal with me leading."
Americans John Mallinger (62), John Rollins (65), Justin Leonard (65) and Australian Michael Sim (62) were all tied for third on 18 under.
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