Jonny Bairstow's astonishing unbeaten 108 from 48 balls led Punjab Kings to the highest successful T20 run-chase.
Kolkata Knight Riders posted 261-6 but the Kings reached their target with eight balls to spare and eight wickets remaining.
The previous record was South Africa's chase of 259 against West Indies last year.
England's Bairstow was dropped for Punjab's previous two games and responded with a brutal display of striking that included eight fours and nine sixes.
His 45-ball century was the quickest by an Englishman in the IPL, beating his own 52-ball effort from 2019.
"We knew that we had to go ballistic after how they batted. We had to take risks and thankfully they came off," said Bairstow.
"I've never been faced with a target like that before. So we knew the powerplay would be important, and if anything is close to being in your area you've got to make the most of it."
He had been previously struggling for form, with a high score of 42 across his six innings.
Prabhsimran Singh opened with Bairstow as an impact substitute and smashed 54 from 20 balls in an opening stand of 93 in six overs.
Shashank Singh's 68 not out from 28 balls - including eight sixes - also helped Punjab power to victory.
Kolkata spinner Sunil Narine's 1-24 from four overs was a remarkable effort in the context of the score, making him the only bowler to concede at a rate under 10 runs per over in the innings.
Narine earlier helped set up Kolkata's 261 with a 32-ball 71 at the top of the order, while England's Phil Salt continued his fine form with 75 from 37 balls.
It was an innings to forget for England and Punjab all-rounder Sam Curran, who was dispatched for 60 runs from his four overs.
Six of the top seven highest team totals in IPL history have been scored in this year's tournament, and this fixture was the third to surpass 500 aggregate runs in a match.
Kolkata remain second in the table despite defeat while Punjab are struggling in eighth.
Source: BBC
BDST: 1200 HRS, APR 27, 2024
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