Former waitress Luciana, 32, delivered a healthy baby girl named Gia Zavala in a Los Angeles hospital on Wednesday.
The couple's baby news comes the same day as Damon's best friend Ben Affleck's wife Jennifer Garner finally confirmed speculation she was pregnant with the couple's second child.
Baby on board: Matt Damon and his wife Luciana, pictured in Los Angeles two weeks ago, have welcomed a baby girl
The Bourne Identity actor's representative Jennifer Allen told People magazine: 'Matt and Lucy Damon had a baby girl named Gia Zavala on Wednesday, Aug. 20th. Everyone's doing great. She is a healthy baby girl.'
Baby Gia joins big sisters Isabella, two, and Alexia - Luciana's 10-year-old daughter from a previous relationship.
The couple married in New York City Hall in December 2005 after dating for two years.
Damon, 37, met Luciana while she was working as a bartender in Miami, when he was filming comedy movie Stuck On You.
Meanwhile, the couple's friends Affleck and Garner confirmed reports they were expecting a second child.
Number two too: Ben Affleck and wife Jennifer Garner seen last month before they made their announcement that baby number two is also on the way
After weeks of speculation over her burgeoning belly, the Juno actress acknowledged she was pregnant.
Speaking at the 10th anniversary of the Baby Einstein educational series in LA, Garner said: 'We're so excited, obviously... It's all good, it's great.'
Garner, 36, poked fun at her bump, saying: 'Oh, I'm not pregnant. I just had a lot of carbs for breakfast. It's just - what do they call it - a breakfast pouch?'
Affleck and Garner, who married in the Caribbean in June 2005, welcomed their first child, a daughter Violet the following December.
Garner is rumoured to be expecting their second child in October.
Yes, I'm pregnant': Jennifer Garner - and her baby bump - on the red carpet of the 10th anniversary of Baby Einstein yesterday
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