A vote in the Dáil (Irish parliament) confirmed the 38-year-old as the country’s youngest, and first gay, leader.
The former GP, who is the son of an Irish nurse and a doctor from India, won the Fine Gael party leadership earlier this month.
He has made his leadership rival Simon Coveney the deputy leader of the party.
Mr Varadkar was elected as taoiseach by 57 votes to 50, with 47 members of parliament abstaining from the vote.
Addressing the Dáil after his election, he said: “I’ve been elected to lead but I promise to serve.”
Outgoing taoiseach Enda Kenny nominated Mr Varadkar to succeed him at the start of Dáil proceedings, saying that he would carry out the role with integrity and skill.
“As the country’s youngest holder of this office, he speaks for a new generation of Irish women and Irish men,” he said.
Source: Leo Varadkar elected as Republic of Ireland’s taoiseach – BBC News
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