After Park and Ryu birdied the first extra hole to eliminate Hataoka, Park clinched victory at the next with another birdie at Kemper Lakes in Kildeer, Illinois.
However, the birthday girl, So Yeon Ryu, who turned 28, finished strong with birdies on 14, 15 and 17 to move into a share of the lead at 6-under par, along with first round leader Sung Hyun Park and 2016 KPMG Women's PGA Champion Brooke Henderson.
Park secured her second major since her victory in the U.S. Women's Open in July 2017.
Ryu ended a almost year-long victory drought when she won the Meijer Classic two weeks ago, a result she achieved after a change in attitude.
The Smiths Falls, Ont. native showed some frustration on the 11th hole of Kemper Lakes Golf Club, breaking her club after missing a wedge shot, on her way to finishing tied for sixth at the Women's PGA Championship.
Park, who shot a bogey-free 69 in the final round to force the playoff, said her dramatic day felt "like a dream".
The 20-year-old was playing her second Major of the year and had missed the cut at ANA Inspiration.
Hataoka ultimately fell at the first playoff hole, a flat ending to a day that had started with her nine strokes off the lead.
"The chip shot [for birdie on the par-four fifth] was a pretty tough one, but I made the birdie and I was able to have two birdies under my belt after like five holes, so that was pretty happy", Ryu told the LPGA's official website.
Rafael Nadal, Novak Djokovic, Maria Sharapova Lead Champion Parade At Wimbledon
In addition to Federer's Nike RF logo, the logo on the right shoe has the No. 8, reflecting how many Wimbledon's he has won. Of course I love to play at Queen's [he last appeared there in 2015]. "As long as he's here, I'm going to try to be here".
Sweden beat Switzerland to set up possible quarter-final with England
Sweden's goal came via a deflection and Switzerland rarely looked like scoring after going behind. Then, in the second half, Xhaka lined up a shot from outside the area and very almost whiffed.
Amazon Prime Day will be longer this year with more great deals
With these capabilities, the Echo Show is among the most advanced of Amazon's Echo speaker line and ahead of its time in general. Starting on the 16th and ending promptly on the 17th, the latest "best deals" event offers a lot exclusively for Prime members.
Park was consistent when it counted and didn't make a single bogey over the last 30 holes of the tournament.
After watching the play unfold, Ryu calmly drained her lengthy birdie putt to reach 12-under par.
"I think this performance is one of my best performances I've ever had in my professional career", Park said.
Ryu was sporting in defeat, congratulating her opponent and insisting "one day I want to lift that trophy". She knows what she has to do, and she took a big step Saturday.
"(I will try to) get better in my head and just go out tomorrow and made a lot of good shots and see if I can make some birdies, and hopefully they roll in".
Hataoka was completely off the radar when the round started with a 54-hole score of two under par. Park's putter used to be 34 inches long, but she shortened it to 33 inches.
Hataoka could not then match her two rivals and watched on as Park clinched the title.
Australian Sarah Jane Smith made eagle on the par-5 7th hole but only managed two birdies to go with three bogeys for a round of 71 and a total of four under, and a tie for 11th place.