Seventh seed Saina defeated the American qualifier 24-22, 18-21, 21-19 in an hour in the second round contest.
Saina was the only bright spot on a dismal day for Indian badminton as she notched up an easy 21-15 21-6 win.
The All England has remained an elusive mirage for India’s most successful badminton player - Saina Nehwal.
At 34, Bhat became the first Indian since P Gopichand to win a Grand Prix Gold-level title in Europe.
He won mixed doubles gold at the 2008 Games in Beijing and a bronze medal in the men's doubles in London.
Top seed beats Sindhu to win Syed Modi title, her first in more than a year.
Saina will face second seed PV Sindhu in the summit clash.
In the women’s doubles event, Muenwong and Ostermeyer beat duo of Gutta and Ponnappa 21-14, 21-11 in the quarterfinals.
An out of sorts Kashyap said he committed many unforced errors that proved costly for him.
Saina continued her march towards the season's first title with a 21-5 21-10 victory over Russia's Perminova.
In a mixed doubles match, the Malaysian pair of Khalid and Soong defeated the Indian pair of Sanyal and Jwala.
Saina went down fighting 21-16 10-21 19-21 to a lower-ranked Yao Xue of China.
Saina, surprisingly, could not catch her opponent even once during game two.
This is the Guntur lad's second-biggest career-win after he'd scalped Jan O Jorgensen last season.
His victory in the national junior championship last month made way for his top ranking.