
Roy van den Berg, Harrie Lavreysen and Jeffrey Hoogland set a new Olympic record of 41.369s in the final at the Izu Velodrome, winning by more than three seconds.
The British team, who won the men’s team sprint in Beijing, London and Rio, had to settle for silver but another medal meant Jason Kenny made history.
Kenny is the first athlete to win eight Olympic medals in track cycling, moving ahead of compatriots Chris Hoy and Bradley Wiggins, who both claimed seven.
Kenny is now level with Wiggins on eight medals overall at the top of the all-time list of British Olympic medallists.
Wiggins also won a time trial gold in road racing.
But the British team of Kenny, Jack Carlin and Ryan Owens were outclassed by Holland, who were hot favourites after winning the men’s team sprint at each of the past three world championships.
It was Holland’s first gold medal in men’s track cycling since 1936, when Arie van Vliet won the 1km time trial.
France saw off Australia to take bronze in a time of 42.331s.