The Tide started off slowly, trailing the Longhorns 6-0 for most of the first quarter. The Longhorn's record-setting quarterback, Colt McCoy, was knocked out of the game after the first play and never returned to the field.
The final score is 37 to 21.
Alabama won thanks to its big-play defense and punishing ground game.
The No. 1 Crimson Tide held off a rally by second-ranked Texas and beat the Longhorns with help from a late fumble recovery by Courtney Upshaw at the Texas 3-yard line.
Heisman Trophy winner Mark Ingram then scored a clinching touchdown from 1 yard out with just more than two minutes left in the game.
Alabama's Marcell Dareus knocked out Texas quarterback Colt McCoy on the Longhorns' first possession and later scored on a 28-yard interception return just before halftime.
The victory makes Tide coach Nick Saban the first coach to win BCS titles at two schools - Alabama and LSU.