The Frenchman overcame stubborn resistance from the world No.216 who, depsite defeat, has had an excellent week, defeating top 20 player Stanislas Wawrinka, defending champion Sam Querrey as well as world No.54 Adrian Mannarino in Friday's quarter-final.
"It's obviously been a fantastic week for me" said Ward. "I just hope to build on it from now on in. I came into the tournament hoping to win in the first round but the more I won, the more I believed in myself, and this game is all about confidence.
"I will take that now into Eastbourne next week. Today was a great match and I just missed out, but it's onwards and upwards from here."
The Briton made a nervous start in his first semi-final match at this level and Tsonga took full advantage as he broke in the second game. As the match progressed Ward began to find his feet, firing up his powerful serve to great effect to hold in game three.
However Tsonga, who was appearing in his third ATP World Tour semi-final of the year, eventually went on to close out the set 6-3.
The Londoner continued to probe Tsonga at every opportunity and forced the world No.19 to serve to stay in the second set at 4-5.
Tsonga obliged and then went on to prevent an all-British final by saving set point in the tie-break before converting his second match point to confirm a sixth career meeting with British No.1 Murray who outclassed Andy Roddick in the other semi-final.
