It was a heart-break for Democratic nominee Clinton, who was hoping to become the first woman president of the US, as Trump edged past her in a see-saw battle which he clinched by winning 288 electoral college votes to Clinton's 215.
To win the presidential election, a candidate needs 270 of the 538 electoral college votes.
The 70-year-old business tycoon's strong showing in states like Pennsylvania, Ohio, Florida, Texas and North Carolina helped him pull-off a win which proved most pollsters wrong.
Trump said he received a call from Clinton, who congratulated him on the victory.
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"And I congratulated her on her hard campaign. We owe her a major debt of gratitude to the country," he said.
"Ours was not a campaign, but a movement. It is a movement comprising from all races, background and believes. Working together, we would begin the urgent task of rebuilding the country. The country has a tremendous potential," he said.
CNN projected that Trump had won 29 states while Clinton emerged victorious in 18.
According to the channel, Trump won Pennsylvania, Florida, Alaska, Utah, Iowa, Arizona, Wisconsin, Georgia, Ohio, North Carolina, North Dakota, South Dakota, Nebraska, Kansas, Oklahoma, Texas, Wyoming, Indiana, Kentucky, Tennessee, Mississippi, Arkansas, Louisiana, West Virginia, Alabama, South Carolina, Montana, Idaho and Missouri.
Clinton emerged victorious in California, Nevada, Hawaii, Illinois, New York, New Jersey, Maryland, District of Columbia, Vermont, Massachusetts, Connecticut, Delaware, Colorado, New Mexico, Virginia, Oregon, Washington and Rhode Island.
Once considered a long shot for the presidency, the billionaire from New York tapped into the disillusionment of the average white working class American against the establishment, molding it into vicious anti-immigrant rhetoric which proved to be an electoral gold mine.
Most experts said the FBI announcing reopening of its
probe into the 69-year-old former secretary of state's email scandal could have swung the pendulum in Trump's favour.
The FBI though gave her a last-minute clean chit ahead of the polls, experts said it might have been too late by then.
Trump, addressing his supporters, talked about his vision to boost America's economy.
"We will embark upon a project of national growth and renewal. We have a great economic plan. We would double our growth. We will get along with all other nations, willing to get along with us," Trump said.
"America no longer would settle for anything less than the best. I want to tell the world community, we would deal fairly with every one," he said.
Trump also thanked his wife Melania, parents, brothers, sons and daughters for their constant support throughout the campaign.
"This political stuff is nasty and is tough," he said as he called for unity after brutal elections.
"It is time for us to come together as one united people," Trump said.
He also thanked former New York City Mayor Rudy Giuliani, New Jersey Governor Chris Christie, Senator Jeff Session, Dr Ben Carson, Mike Huckabee, Gen Mike Flenn.
"His leadership and vision would make America Great," Pence said while introducing President-elect Trump.
Trump will be the oldest president ever sworn in for a first term and will take the helm of a nation left deeply divided by his scorched-earth campaign.
His victory was built on fierce anger at the Washington establishment and political elites among his grass-roots voters, many of whom feel they are the victims of a globalised economy that has resulted in the loss of millions of jobs.