Marcos Pagdatis remains a hero on the Mediterranean island of Cyprus despite losing to top-ranked Roger Federer in the Australian Open final.

The unseeded Pagdatis — ranked 54th in the world before the tournament — made the final in Melbourne but lost to Federer 7-5, 5-7, 0-6, 2-6.

Pagdatis was bidding to become the first unseeded player to win the title since 212-ranked Australian Mark Edmondson won in Melbourne in 1976. The Cypriot’s ranking has now climbed to 26.

His defeat did not stop Greek Cypriots from pouring into the main square of Paramytha village — the home of Pagdatis’s parents — under the deafening sound of fireworks, gunfire, church bells and music. Celebrations also spread to the Aghios Nikolaos roundabout — the traditional venue for all sporting celebrations in Limassol — where fans draped in Greek and Cypriot flags chanted his name.

Pagdatis, a former world junior champion, beat several seeded players, including No. 2 Andy Roddick, Ivan Ljubicic and David Nalbandian, to reach the final.

“We don’t care if he lost, he is still a winner for us,” youngster Kyriakos Theodosiou said.

Pagdatis became the first Cypriot to play in a Grand Slam final and local authorities in Limassol are preparing a massive welcome for him. The port city’s council has announced it will name a street after him and establish a Marcos Pagdatis prize for athletes who excel.

An emotional Roger Federer won his seventh Grand Slam final and his second Australian Open title with this commanding four-set victory over Pagdatis. The Swiss world No. 1 fought back from dropping the opening set against the charismatic 54th-ranked star to claim victory in two hours and 46 minutes.

It means he remains unbeaten in all the Grand Slam finals he has contested since his initial triumph at 2003 Wimbledon.

Federer became the first player to win three successive Grand Slams since Pete Sampras took the 1994 Australian Open. The Swiss went into this year’s Open having won last year’s Wimbledon and US Open. He now joins other tennis greats John McEnroe, John Newcombe and Mats Wilander with seven major titles and is now halfway to all-time leader Sampras’s 14.

Federer sobbed soon after receiving the trophy from his idol Rod Laver.

“I hope you know how much this means to me,” he said, wiping away tears as the crowd roared its approval. “It was still quite a long way to the finish line. I was getting to think I was emotionally ready for that, which normally you shouldn’t, but I can’t block it out. I’m also just human.”

Also making it a difficult time for Federer was the memory of his former Australian coach Peter Carter, who died in a car crash in 2002.

“It’s always very emotional winning here, because of Peter, then Tony Roche, it’s very nice to share the moment with Peter’s family,” he said.

It was the 24-year-old’s 35th title and his fourth win over 20-year-old Pagdatis, who beat three top-10 players to reach his first Grand Slam final and only second tour final overall.

“I did focus for two sets but then, I don’t know, there were moments that I started thinking too much,” Pagdatis said. “Maybe I was a bit scared of him and didn’t really believe in it.”

Federer took great pride in being able to pass some of his tennis heroes on the all-time Grand Slam winners’ list.

“I’ve left my idols behind me now,” said Federer. “That means something. I’m very pleased. But they still stay my heroes, Boris Becker and Stefan Edberg.”