Despite being below their best for much of the contest, the North Africans produced a clinical second-half display to comfortably dispatch the tournament co-hosts.
The victory leaves Morocco just one win away from equalling their remarkable last-four appearance four years ago.
Canada made the brighter start and threatened to take an early lead, but Morocco goalkeeper Bono came to his side’s rescue with outstanding one-on-one saves to deny Jonathan David and Tani Oluwaseyi inside the opening 11 minutes.
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Morocco struggled to find their rhythm before the interval and showed visible signs of frustration during a feisty first half that ended goalless. English referee Michael Oliver had a busy afternoon, issuing seven yellow cards as tempers repeatedly flared.
The breakthrough arrived five minutes after the restart. Achraf Hakimi’s free-kick was worked into the path of Azzedine Ounahi, who was afforded too much space by Canada’s defence before drilling a finish from just inside the edge of the penalty area.
Ounahi struck again in the 82nd minute, finishing off a rapid counter-attack to put Morocco firmly in control and complete his brace.
Soufiane Rahimi nearly added a third when his looping header crashed against the crossbar, but the forward would not be denied.
With the final touch of the match in stoppage time, he raced clear and calmly slid the ball underneath goalkeeper Maxime Crepeau to complete an emphatic victory.