"He hit some really good shots to put me under pressure," Henman said. "I don't think I was given too many opportunities. It was more him playing a very good match than me doing anything wrong."
Rafter will meet the fourth seed, Richard Krajicek, in the final after the Dutchman ended Andre Agassi's 14-match winning run with a 4-6, 7-5, 6-2 victory in the other semi-final.
Rafter, the world No 5, has advanced through the tournament with straight- set wins over his fellow Australian Mark Philippoussis, the fifth-seeded Jonas Bjorkman of Sweden and now Henman, who was seeded seventh.
"Tim looked a step slow and I wanted to take advantage of that," Rafter said. "Everything went my way and he was flat - nothing went his way."
Mary Pierce produced a shock in the semi-finals of the Toshiba Tennis Classic in California by beating the top seed, Martina Hingis, 3-6, 7- 6, 6-2.
Pierce faces the second-seed, Lindsay Davenport, in the final. She earlier won through her semi-final against Monica Seles.Reuse content