The 35-year-old, defeated in his first comeback match in Stuttgart last week, was aggressive from the start, breaking in the first game to take control.
He will now play local favourite Alexander Zverev, who beat Frenchman Richard Gasquet 4-6, 6-4, 6-3 in the other semi-final.
Federer also spoke about his straight sets victory over Mischa Zverev, who is at a career-high ranking of 29. The Swiss then fended off set points at 5-6 before closing out the match in a breaker.
In a match dominated by serve, Federer was better in the clutch moments, converting pressure into points when it counted.
However, 21-year-old Khachanov rallied and force two set points which would have taken the match into a decider before Federer, an 18-time Grand Slam victor, closed out the tie-break. "Probably it's one of the dream finals of the tournament and I'm very much looking forward to it".
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Federer, an eight-time champion in Halle, had 11 aces, saved both break points he faced and converted two of his own to maintain his bid for a 16th grass-court title.
"I was a little uncertain about a player I don't know too well", he said of Khachanov. "It's warm, it's hot, I'm a little bit exhausted". "It will still be a very hard match". "I'm still just very happy how I was able to close it out in the tie-breaker. t was perhaps not always very attractive to watch, but it's good to be in the final in the second tournament after my return", said the Swiss Master, via Fox Sports. He first reached the Halle final in 2003 but has not played for the trophy at the ATP World Tour 500 tournament since 2015.
The World No. 5 has yet to drop a set in Halle this week.
Fourth-seeded Alexander Zverev of Germany knocked off No. 7 seed Roberto Bautista Agut of Spain 6-7 (6), 7-6 (1), 6-1 to advance in another quarterfinal match.
"The second part of the season is going to be really crucial for Andy and for Novak (Djokovic) too".
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