The hopes of the nation (except Bolton) had hoped the hugely popular 38-year-old would finally be able to lift the trophy he deserved after previously losing out in two FA Cup finals.
Footballer of the year Nat Lofthouse disobeyed the script by scorring after just two minutes, but Blackpool equalised through Stan Mortensen.
Bolton regained the lead shortly before half-time when Blackpool keeper George Farm misjudged Willie Moir's attempt to connect to a Bobby Langton chip.
Ten minutes after half-time it was 3-1 to the trotters when Eric Bell headed in Doug Holden's cross.
With just 30 minutes left, Matthews shot into life, creating a goal for Mortensen to make it 3-2.
With 180 seconds left a free-kick from Mortensen made it 3-3 and deep into injury-time, Matthews jinked past a couple of defenders and slipped the ball to Bill Perry who blasted the ball into the net with just seconds remaining.