Only one MP voted against and another abstained, as the German parliament approved overwhelmingly by a show of hands the resolution titled "Remembrance and commemoration of the genocide of Armenians and other Christian minorities in 1915 and 1916".
In the public gallery of the Bundestag, onlookers including members of the Armenian community held up banners saying "thank you" as the parliamentary speaker announced the result of the vote to applause.
But Turkey swiftly condemned the resolution, and recalled its ambassador to Germany for consultations. Ankara also summoned the German charge d'affaires to the Turkish foreign ministry.
Turkish President Recep Tayyip Erdogan also warned "the resolution adopted by the German parliament will seriously affect relations between Germany and Turkey."
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Erdogan's condemnation came after Deputy Prime Minister and government spokesman Numan Kurtulmus called the Bundestag recognition a "historic mistake" and dismissed it as "null and void".
The "genocide" recognition comes at a particularly awkward time as Germany and the European Union are relying on Turkey to help stem a record influx of migrants even as tensions are rising between both sides over human rights and other issues.
Yerevan has long sought international recognition of the "genocide", but Ankara rejects using the term to describe the killings more than a century ago and argues that it was a collective tragedy in which equal numbers of Turks and Armenians died.