Rollins laced a 3-1 single to right field off Edwin Jackson in the fifth inning to pass Hall of Famer Mike Schmidt atop the hit list for the 132-year-old franchise.
Schmidt, a Phillies TV analyst for Sunday games, retrieved Rollins' bat after the milestone single and greeted Rollins with a high-five and hug at first base. The entire Phillies team then came out from the dugout to offer congratulatory hugs and handshakes.
Once the Phillies left the field, Schmidt took Rollins' hand and held it in the air to the cheers. The pair was then given a standing ovation as fireworks erupted from the large video board in left field.
The 35-year-old Rollins received a loud ovation when he came to the plate his first two times up Saturday, but he grounded out to first on the second pitch he saw in the first inning and lined out sharply to first in the second.
The switch-hitter led off the fifth batting from the left side and drove Jackson's 3-1 offering sharply into right field for his record-setting hit.
Rollins was drafted in the second round of the 1996 draft and made his debut with the Phillies on Sept. 17, 2000. He got his first hit that day, a triple off Chuck Smith, at Veterans Stadium.
In 15 years with the Phillies, the 5-foot-8 shortstop has won four Gold Gloves, made three All-Star teams and was the 2007 NL MVP. He was a member of the club's 2008 World Series championship team.
Rollins already tops Philadelphia's doubles list with 466, and he is in the top 10 of nearly every offensive category in club history.
He is second in extra-base hits (782), total bases (3,540), games (2,015), at-bats (8,331), and third in steals (436), runs (1,281) and triples (109).
Rollins is one of 19 players in major league history with at least 400 doubles, 100 triples and 200 home runs. He is fourth all-time with 46 leadoff homers.
The Associated Press contributed to this report.
Rollins Sets Phillies' Hit Record In Win
Jimmy Rollins passed Mike Schmidt as the Phillies' career hits leader in their 7-4 win over the Cubs.