While favourite Prevc showed dominance in the trial round, jumping 103 metres, it was the Norwegian 27-year-old Stroem who was willing to play the game and managed to end the first round on top, jumping 100 metres and getting a single point advantage over Prevc going into the final round.
Despite the pressure, Stroem managed to increase the jump in the final round, ending at 101 metres and 267.3 points in total, and could celebrate her gold, giving Norway their first gold medal of the Olympics, with Japan's Nozomi Maruyama grabbing the bronze 5.5 points behind Stroem.
"It feels amazing. Actually I cant believe it to have the gold medal around my neck," Stroem told Reuters.
"There was so much work put towards this from me and my teammates and the team around us."
Prevc looked disappointed with the result and the youngster did not overly celebrate claiming a silver medal.
She said she was looking ahead to the rest of the Games, with the mixed team and large hill events to come.