The former Labour leader clinched a victory with more than 24,000 votes, compared to Labour candidate Praful Nargund who won more than 16,000.
It will come as a huge relief to Mr Corbyn, who has represented the north London constituency for 40 years.
Speaking at the count, he said: "I want to place on record my enormous thanks to the people of Islington North for electing me for the 11th time."
He added: "We have shown what kinder, gentler and more sensible, more inclusive politics can bring about.
"I couldn't be more proud of my constituency than I am tonight and proud of our team that brought this result. Thank you very much Islington North for the result we have achieved tonight."
Islington North was on a knife edge, with the earlier general election exit poll saying that it was too close to call.
I think being an independent suits Corbyn. He's always been more of an independent campaigner than a party MP. All the best to him now he's free of the whip.
I'm a big fan of Corbyn, I think he would've been an excellent PM and would have genuinely done a lot for working class people in the UK.
The vilification he endured by the media and political class was completely abhorrent. For me, he's one of a small number of actually good politicians.
Glad to see the people of his constituency still believe in him.
Interesting thing is that Corbyn actually won mores votes in two general elections than Keir did in this one
And that was with his own party actively trying to lose. Imagine if they just gave him a chance?
One of the more intriguing results of the night and one of a few places Labour lost.
A lot of areas have labour wins with other lefter leaning candidates aggressively nipping at their heels, despite a monumental imbalance in funding. Come the next election cycle I can see Labour getting a rather rude awakening, but we'll see if they take that seriously or not.
I don't know if I'm being naïve but I find 24,000 to 16,000 a bit closer than expected!
