Sania and Bopanna were beaten 7-6(2), 6-2 by Brazilians Stefani and Matos, who were playing in their first-ever Grand Slam final.
In her final major, the 36-year-old Sania admitted her emotions almost boiled over after the Indians stunned third seeds and reigning Wimbledon champions Desirae Krawczyk and Neal Skupski in the semifinals. There was no holding them back after her final match at Melbourne Park, 22 years after she first teamed with Bopanna.
Interestingly, Sania claimed her first major in 2009 at Melbourne Park, when she paired up with Mahesh Bhupathi. And she ended her illustrious Grand Slam career here.
Melbourne Park has been a happy hunting ground for the Indian star. After his maiden triumph in 2009. Seven years later, in 2016, she paired up with Swiss star Martina Hingis and claimed the women's doubles title as the top seed.
Outside Australia, she earned four other Grand Slam titles: 2015 Wimbledon and 2015 US Open women's doubles with Hingis, 2012 Roland Garros mixed doubles with Bhupathi and 2014 US Open mixed doubles with Bruno Soares.
"The journey of my professional career started in Melbourne in 2005 when I played Serena Williams in the third round as an 18-year-old," an emotional Sania said.
"That was scarily enough 18 years ago and I've had the privilege to come back here again and again and win some titles here. Rod Laver Arena has really been special in my life. To play the final, obviously, we couldn't get over the line, but there's no better place and no better person to finish my Grand Slam career with."
"I never thought I'd be able to play in front of my child in a Grand Slam final, so it's truly special for me to have my four-year-old here and my parents here, Rohan's wife here," she added.
Bopanna was looking to add a second Grand Slam mixed doubles title after his 2017 Roland Garros victory. Despite coming up short, he paid tribute to his compatriot and friend.
"It's truly special for me to play with Sania," he said. "Our first mixed doubles together was when she was 14 years old and we happened to win the title.
"Today we get to play the last match here on Rod Laver Arena. Unfortunately, we couldn't get the title, but thank you so much for your time, for Indian tennis, for inspiring each and everyone."
Stefani and Matos are the first all-Brazilian team to win a major after ending Sania and Rohan Bopanna's farewell appearance together in the Australian Open mixed doubles final.
"Rohan and Sania I know how many people you've inspired," Stefani said. "Like Brazil, like India, this means so much to our countries. It inspires the kids, it inspires the next generations."
The six-time Grand Slam champion, Sania, earlier this month announced that she will retire from professional tennis after the Dubai Tennis Championships, a WTA 1000 event, which begins on February 19.
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