Federer was coolly efficient on a hot day in the desert, firing seven aces and connecting on 72 percent of his first serves in the match that lasted barely an hour.
"Having the fire and wanting to win every single match and in the practice trying to improve as much as you can, I've got the good balance right now, so it's very encouraging," Federer said.
No. 2 seed Agnieszka Radwanska will play Flavia Pennetta in the women's final Sunday.
Federer never faced a break point on his serve while breaking Dolgopolov four times, including a seven-deuce game to go up 4-1 in the second set. Dolgopolov had a chance to win that game four times, but each time his unforced error brought it back to deuce.
The Ukrainian's forehand error finally gave Federer the game. The Swiss star won the final four games, breaking Dolgopolov at love on his backhand error to close it out.
"I just missed too many shots today, the shots that you don't miss in these matches," Dolgopolov said. "My concentration was going away for maybe one, two points every game, and you can't afford to have that in these matches."
Federer will try to win his second title of the year in Sunday's final. He's coming off a victory two weeks ago at Dubai, and his 19-2 match record this year is his best start since he began 23-2 two years ago. He won at Indian Wells from 2004-06 and again in 2012.
A year ago at Indian Wells, Federer injured his back during a match and took nearly a month to feel better. After Wimbledon, he re-injured his back and found himself questioning everything, leading to an uneven year for the sport's once dominant player.
Back in the desert once again, Federer feels like a new man.
"I'm just playing more freely overall and with more confidence because I can get to more balls without thinking," he said. "I can wake up in the morning without feeling sore. I can go to bed not feeling like I hope I feel better tomorrow. I don't have these thoughts going through my mind and I'm not worried every single minute of the day."
Ranked 28th, Dolgopolov was in the semifinals of an ATP Tour Masters 1000 event for the first time. He upset defending champion and top-ranked Rafael Nadal in the third round despite getting only 40 percent of his first serves in. That hurt him against Federer, as Dolgopolov made 39 percent of his first serves and had 25 unforced errors.
Dolgopolov is projected to rise to around 24th in the world from 31st in Monday's rankings, having reached three consecutive semifinals for the first time in his career.
Dolgopolov expressed support for his homeland on the eve of a referendum on whether Crimea, which belongs to Ukraine, should seek annexation by Russia.
"Of course, it's not nice, it's not calm now in the country, but hopefully it will get past and we're going to be safe and living there fine," he said.