Joseph Muscat became premier in March 2013 after his Labour Party won a national election, returning to power after 15 years in opposition.
Outgoing prime minister Lawrence Gonzi of the the Nationalist Party conceded defeat.
Labour was previously in government between 1996 and 1998.
Following the election it was expected to have a nine-seat majority in Parliament, in contrast to the Nationalist Party's one-seat majority in the last legislature.
Mr Muscat, aged 39 when he took office, is an ex-journalist and former member of the European Parliament.
"We want to work with the opposition and all those who do not agree with us but who are willing to work with us. Yesterday, this government received a historic mandate," Muscat said after being sworn in.
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