The unseeded Pagdatis — ranked 54th in the world before the tournament — made the final in Melbourne but lost to Federer 7-5, 5-7, 0-6, 2-6.

Pagdatis was bidding to become the first unseeded player to win the title since 212-ranked Australian Mark Edmondson won in Melbourne in 1976. The Cypriot’s ranking has now climbed to 26.

His defeat did not stop Greek Cypriots from pouring into the main square of Paramytha village — the home of Pagdatis’s parents — under the deafening sound of fireworks, gunfire, church bells and music. Celebrations also spread to the Aghios Nikolaos roundabout — the traditional venue for all sporting celebrations in Limassol — where fans draped in Greek and Cypriot flags chanted his name.

Pagdatis, a former world junior champion, beat several seeded players, including No. 2 Andy Roddick, Ivan Ljubicic and David Nalbandian, to reach the final.

“We don’t care if he lost, he is still a winner for us,” youngster Kyriakos Theodosiou said.

Pagdatis became the first Cypriot to play in a Grand Slam final and local authorities in Limassol are preparing a massive welcome for him. The port city’s council has announced it will name a street after him and establish a Marcos Pagdatis prize for athletes who excel.

An emotional Roger Federer won his seventh Grand Slam final and his second Australian Open title with this commanding four-set victory over Pagdatis. The Swiss world No. 1 fought back from dropping the opening set against the charismatic 54th-ranked star to claim victory in two hours and 46 minutes.