Newcastle's preliminary-final win was watched by 57,000 fans, most wearing the Knights' blue and red, as excitement built for the club's first grand final since 2001.
Sandon Smith helped secure the place, scoring two long-range tries against Penrith and continuing a strong season after joining Newcastle from the Sydney Roosters.
The 23-year-old was displaced when the Roosters signed Daly Cherry-Evans for 2026 and moved north seeking a fresh opportunity.
Now he faces Cherry-Evans in the grand final, the veteran's final NRL game, and hopes to deny him a second premiership.
"Daly has been one of the best halfbacks over the past 15 years," Smith said. "I watched him this year and he's been awesome for the Roosters. I'll have to shut him down next week and need to do a job on him."
Smith has played 24 matches this season and took the No.7 jersey after Dylan Brown tore his ACL in a Round 21 loss to the Roosters.
He is only the second halfback to lead Newcastle to a grand final, after Andrew Johns.
"It's pretty good to be here but I don't think we're anywhere near that level yet," Smith said. "It's an honour to be in that mix."
Phoenix Crossland was sent off in the 35th minute against Penrith for a hip-drop tackle on Nathan Cleary and referred straight to the judiciary, leaving him likely to miss the final.
Rookie hooker Harrison Graham stepped up as Newcastle played with 12 men, and Smith backed him to perform on the biggest stage.
"I'm gutted for Phoenix," Smith said. "I'm not sure what's going to happen next week, but I pray that he can be out there with us."
Smith said the Knights' confidence remained strong as another convoy of Sid Fogg's buses prepared to travel to Accor Stadium for Sunday's grand final.