The singers performed their collaborative hit, "Senorita," to cheering fans inside Newark, New Jersey's Prudential Center where the awards ceremony took place. The song received multiple nominations including Best Art Direction, Best Choreography and Best Collaboration.
And, the power of that collaboration was on full display as the pair made a dreamy entrance onstage, walking toward each other on a stage lit with pretty lights. As Mendes strummed his guitar while launching into his verse, Cabello twirled around in white before making her way over to the Canadian hunk to stroke his muscly arm.
While the two teased fans with near-kisses throughout the steamy performance, they didn't lock lips, instead holding hands, dancing and ending the song by adorably nudging their noses together.
Earlier in the ceremony, Mendes also took the stage solo to perform his catchy hit, "If I Can't Have You," after Bebe Rexha introduced him as "one of the biggest performers on the planet."
As he launched into the track, anticipation rocketed for Cabello to make her entrance for "Senorita," but fans had to wait until later in the ceremony for the showstopping performance.
The two arrived separately on the red carpet, with Cabello, 22, wearing a flowing, white dress, while Mendes,21, wore a forest green Dolce & Gabbana suit.
The pair's steamy performance comes after what seems to have been a summer of love for the two artists, who have earned themselves a cute nickname, “Shawmila.”
A source told ET in early August that the two have truly fallen for one another and Cabello has been traveling with Mendes on tour as they remain "committed to working on a relationship.”
"Shawn and Camila originally were just enjoying spending time together and having a summer fling," the source said. "Camila had just gotten out of a relationship and Shawn was in the middle of a massive tour. However, Shawn and Camila have really fallen for one another.”