The youngest Nobel laureate by nearly 10 years, Malala was awarded alongside child rights' campaigner Kailash Satyarthi for her work promoting peace and girls' rights.
"I'm proud that I'm the first Pakistani and the first young woman who is getting this award. It's a big honour for me." Malala shared with reporters, after finishing her school day in Birmingham, England.
In a statement, the Norwegian Nobel Committee said: "Despite her youth, Malala Yousafzai has already fought for several years for the right of girls to education, and has shown by example that young people too can contribute to improving their own situations. Through her heroic struggle, she has become a leading spokesperson for girls' rights to education."
Malala publicly thanked her father for the win, sharing that his unwavering support made all the difference.
"I am thankful to my father for not clipping my wings; for letting me fly and achieve my goals. For showing the world that a girl is not supposed to be 'the slave.' A girl has the power to go forward in her life."
A WIN FOR GIRLS EVERYWHERE
Despite a record number of nominations this year, Malala's strength and perseverance have, at just age 17, placed her among the ranks of Nelson Mandela and Martin Luther King, Jr.
It's not only a huge win for Malala - but also a massive success for girls everywhere.
Malala Yousafzai embodies courage. In the face of grave danger, she has championed girls' education and inspired the world to her cause,
"It is fitting that this award comes as the world recognizes International Day of the Girl tomorrow - Malala is an example of the power of girls to change their communities and the world."
In an interview with the AP, Malala's father Ziauddin Yousafzai said he hopes the announcement will further girls' rights everywhere.
MALALA INSPIRES A GLOBAL CELEBRATION
The Internet flew into a frenzy following the announcement of Malala's win, with #MalalaYousafzai trending in cities around the world and celebrities, politicians and global leaders tweeting their congratulations.
Pakistan's Swat Valley, where Malala grew up, erupted in celebration when students at the school where Malala was shot began pouring out of classrooms to dance in the streets.
Chaudhry Nisar Ali Khan, Pakistan's Interior Minister, said the award "gave pride to the whole of Pakistan."
United States President Barack Obama called the win "a victory for all who strive to uphold the dignity of every human being," and U.N. Secretary-General Ban Ki-moon declared, "The true winners today are the world's children."
THIS IS ONLY THE BEGINNING
Malala was barely 11 when she began speaking out in Pakistan about girls' education, telling a room of journalists in 2008: "How dare the Taliban take away my basic right to an education?"
Her words were remarkable, not only for their clarity and intelligence, but also for their fearlessness.
Now six years later, despite a failed assassination attempt by those trying to silence her, Malala's fearlessness is stronger and more determined than ever.
I feel more powerful and more courageous because this award is not just a piece of metal, or an award you keep in your room
"This is really an encouragement for me to go forward and believe in myself - to know that there are people who are supporting me in this campaign. We are standing together."
"This is not the end; this is not the end of the campaign I have started. This is the beginning."
Join Malala's fight for girls' education by adding your name to the Girl Declaration. Download the Girl Declaration toolkit and use #GirlDeclaration to spread the word.