The 34-year-old Briton fought with ferocious determination to win from fifth on the grid but was unable to resist the Finn, who started from pole and, with a two-stop strategy, had fresher tyres in the critical final laps.
Sebastian Vettel will take a win-or-bust approach to this weekend's title showdown at the United States Grand Prix, the German driver told reporters on Thursday.
If Hamilton wins, or finishes anywhere in the top five, in Mexico City, he will be champion.
Hamilton claimed his 11th pole of the season to give himself the prime starting position.
