The former Celtic manager oversaw his fourth victory in five Barclays Premier League games on home turf as his side moved above Norwich managed by his one-time Parkhead midfielder Paul Lambert in the table.
Bearing in mind Sunderland had won just three games in 2011 under Steve Bruce, O'Neill's impact on the side has been emphatic.
Unstoppable: Fraizer Campbell (second left) lets fly to open the scoring with a stunning volley
No wonder he's smiling: Campbell celebrates after scoring his goal of the month contender
MATCH FACTS Sunderland: Mignolet, Bardsley, Turner, O'Shea, Richardson (Bridge 82), Larsson, Gardner, Colback, McClean, Sessegnon (Meyler 82), Campbell (Ji 74) Subs not used: Westwood, Wickham, Elmohamady, Lynch.
Scorers: Campbell 21, Sessegnon 28, Ayala (og) 54
Norwich: Ruddy, Martin, Ayala, Whitbread, Naughton, Johnson (Bennett 62), Crofts, Surman, Hoolahan (Pilkington 62), Holt (Wilbraham 78), Morison. Subs not used: Steer, Jackson, Fox, Ward.
Referee: Lee Mason.
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Resolute at the back and posing a serious threat on the counter attack, Sunderland blew poor Norwich out of Wearside to move up to eighth, their highest position this season.
In the process, they won back the Friendly Cup, a small trophy these sides have contested since their appearance in the 1985 League Cup final, a match dubbed the Friendship final.
Norwich had won the Friendly Cup with their own comfortable win at Carrow Road in September but this Sunderland team is an entirely different proposition.
But there was nothing friendly about Sunderland's welcome for Lambert and his players. The home side were ruthless from the start and simply overpowered a side who have been above them in the league table for most of the campaign.
Fraizer Campbell's first Premier League game for nearly two years produced the first goal after just 20 minutes and man of the match Stephane Sessegnon grabbed his sixth of the season before half-time to complete a scintillating move.
The killer third goal was added nine minutes into the second half when a Phil Bardsley cross was bundled over his own line by Norwich defender Daniel Ayala.