The England striker demonstrated nerves of steel as he smashed home the spot-kick past Gianluigi Buffon that sealed a 3-1 win for his side and booked their place in the quarter-finals of the competition.
It had appeared unthinkable that the Red Devils would be able to go to Paris and claim a win by two clear goals, such was PSG's dominance in the first leg and the fact that the visitors had a host of injury problems.
But United scored early through Romelu Lukaku to give themselves genuine hope of a comeback and again went in front through the Belgian after Juan Bernat had earlier equalised.
And then it was left to Rashford to take the penalty in the final moments of the game after referee Damir Skomina, with VAR assistance, ruled that Presnel Kimpembe handled Diogo Dalot's shot from distance.
The 21-year-old made no mistake from the spot as he left Buffon with no chance, blasting the ball high into the net to the Italian goalkeeper's right.
Lingard was clearly elated at the goal that sent United though, posting a video on his social media accounts of him celebrating the strike as he watched from home on television.
And the midfielder, who's currently sidelined after aggravating an injury in the 0-0 draw with Liverpool, also revealed an image of him making a video call to Rashford to congratulate the forward after full-time.
Ole Gunnar Solskjaer and his side will turn their attention back to league matters next, however, with a trip to Arsenal in the Premier League on Sunday.
The Red Devils currently occupy fourth spot in the Premier League, a point ahead of the Gunners, as they look to cement their place in the Champions League spots.
They are also in with a chance of FA Cup glory in a season that had seemed to be going nowhere fast under former manager Jose Mourinho, with United now facing Wolves in the quarter-finals of that competition on March 16.