The victory was Monty's first on the European Senior Tour, a circuit he became eligible for after turning 50 in June.
The eight-time European Tour Order of Merit winner opened with a pair of 68s to establish a commanding lead at Woburn before sealing his first win since the 2007 European Masters with a final round two-under-par 70.
Miguel Angel Martin of Spain and England's Paul Wesselingh shared second on four-under-par, with Montgomerie's fellow Scot Ross Drummond finishing fourth.
"It feels great. Anybody with any competitive blood in them knows that it is nice to win, to come out on top."
The win was Monty's 41st as a professional and he was, understandably, delighted to get off the mark as a senior.
"It feels great," said the 2010 Ryder Cup winning captain. "Anybody with any competitive blood in them knows that it is nice to win, to come out on top.
"This course has suited me down to the ground for years. I had a couple of great finishes on the main Tour - the Junior Tour, as I now call it - so it's nice to come back here and finally win.
"I've said it before but it is like a new lease of life turning 50 in golf. I can't think of any other sports where you take a new step on in your career at such an age and to have such a fine Tour, such an excellent brand, as the Senior Tour as part of that is brilliant so all credit to them for that."
Monty's win, and cheque for €52,299, also catapulted him to 11th place on the European Senior Tour Order of Merit. However, he has some way to go to rein in the leader, Bernhard Langer, who continues to lead the way with earnings of €225,867.
He also still has some work to do if he is to win the tour's 'Rookie of the Year' honour, with Denmark's Steen Tinning currently third on the Order of Merit having coined in €111,345 from seven events this season.