Paul Lambert's Canaries were undone by Steve Bruce's Black Cats in a re-run of the 1985 Milk Cup final.
The home side kicked off attacking the Barclay End goal and forced the visitors to defend for the first five minutes.
Nyron Nosworthy was probably lucky not to be penalised for a body check on Luke Daley in the Sunderland penalty area.
Ben Alnwick did well to tip over Fraizer Campbell's scissor kick, then Craig Gordon did well to keep out Daley's low shot with his legs.
The Sunderland keeper was then at full stretch to tip over Simon Lappin's long-range strike.
The visitors took the lead in the 26th minute when Kenwyne Jones wrong-footed Gary Doherty and broke forward to deliver a low cross from the right which was blasted in by Teemu Tainio.
Four minutes later it was 2-0 when Andy Reid was released down the Norwich right and his chip from 20 yards nestled in the far corner of the net.
Another flowing move ended with Campbell setting up Reid who fired into the roof of the net giving Alnwick no chance.
Gordon kept out a shot from Owain Tudur-Jones just before the break to leave it 3-0 to the visitors at half-time.
The Canaries gave a better account of themselves in the second half, pulling a goal back in the 63rd minute when substitute Cody McDonald's header came back off the post giving Wes Hoolahan the simplest of chances to tap in from close range.
The three-goal margin was restored when Reid's right-wing corner was deflected past Alnwick by the outstretched leg of Tudur-Jones.
Michael Spillane was sent off when he was adjudged to be the last man and Campbell went down under his challenge. Unfortunately, Campbell's momentum carried him into a head-on collision with Alnwick and neither of them were able to continue.
Since Norwich had used all three substitutes McDonald took over in goal. His clean sheet gave the home fans something to cheer on a night that belonged to the visitors.