In a unanimous statement backed by China, Pyongyang's ally, the council instructed its sanctions committee to redouble efforts to implement a raft of tough measures adopted last year.
The council also agreed to "take further significant measures including sanctions" to force North Korea to change course and end its "highly destabilising behaviour."
The Security Council will hold a closed-door emergency meeting today at the request of Japan, South Korea and the United States to discuss further action in response to the latest missile test.
The council demanded that North Korea "conduct no further nuclear and ballistic missile tests."
North Korea on Sunday fired the Pukguksong-2, which uses solid fuel that allows for immediate firing, the state-run Korean Central News Agency said.
It was the latest test-firing in a series this year as Pyongyang steps up its efforts to develop an intercontinental ballistic missile capable of hitting the United States.