It was quite an even first half from both sides. with Thomas Muller and Fernando Torres having excellent opportunities. However it proved to be Carrasco's late effort that made the difference at the break.
It was another even period as the game progressed, with chances from Muller, Carrasco and Robert Lewandowski coming before a penalty miss from Antoine Griezmann, but Atleti had done enough to slay the Germans once again.
Chances from either side
Atletico headed in this match full of confidence, having beaten Bayern in the Vincente Calderon last season to reach the final, but it proved just as close this time around.
It was away side that had the first real opportunity of the contest, Thiago produced a world-class ball over the top to Muller, he looked to match that pass with a similarly excellent finish, but his volley on the turn was well saved by Jan Oblak.
It was then the turn of Diego Simeone's side, who should have easily been ahead 22 minutes in, a corner was flicked onto Torres who looked certain to score with the goal gaping, but the Spaniard somehow managed to hit the post.
Second time lucky
Atletico fans would have felt that they should have been ahead with Torres effort, but Madrid managed to take the lead at the second time of asking, ten minutes before the break.
It was a great effort as the ball was played through to Carrasco, the Belgian did well to set himself up before a hitting low effort across goal which gave Manuel Neuer no chance.
Munich should have equalised moments later, Frank Ribery was presented with a golden opportunity as it dropped at his feet, but Frenchman didn't hit first time which proved to be his downfall, as it squeezed just past the post.
Ancelotti's side came flying out of the traps at the beginning of the second period, and had an excellent opportunity to get themselves back into the game early on. Muller was in a very similar position to that of Torres in the first period, but the German somehow managed to hit the side-netting with his effort.
Carrasco had a sniff at his and Atleti's second goal as the half went on, The Belgian cut inside and hit it towards goal which had Neuer scrambling, but he did well to get across to keep his side in it.
Right to the end
As the game was drawing to a close, Bayern began to become desperate in their search for an equaliser. The ball was played in deep for Lewandowski who was looking for his first opportunity of the evening, but he glanced his header wide.
It looked to be all over for Bayern, as the home side were handed a penalty, there was good play from Saul Niguez and Luis, with the latter been fouled by Arturo Vidal. Griezmann looked to right his wrong's from last season's final, but he missed once again by clattering the crossbar.
It didn't matter in the end, the hosts holding on for an impressive win.