French far-right nationalist Marine Le Pen had hoped to clinch the presidency with a campaign which capitalised on disillusion with the French political elite.
The National Front leader branded herself as "the candidate of the people" and campaigned hard on jobs, security and the threat from Islamic extremism.
But the 48-year-old proved unable to convince voters that she could provide a viable alternative to Emmanuel Macron - a man who represents the system she sought to reject.
Ms Le Pen conceded defeat after exit polls suggested she had received just over a third (35%) of the vote.
Ms Le Pen is the youngest of the three daughters of Jean-Marie Le Pen, who co-founded the National Front.
Lots of leftover blue roses (symbol of National Front) at venue where #MarineLePen has given her concession speech #Presidentielle2017 pic.twitter.com/A6IWD89UQt
— Lisa Pereira (@lisa_pereira) May 7, 2017
She became leader of the party in 2011 and had hoped to go further than her father, who stunned voters by qualifying for the run-off in 2002 before losing heavily to incumbent president Jacques Chirac.
The mother-of-three, who has twice been divorced, came third when she ran for president in 2012 but has since grown in popularity.
As hundreds of people were killed in terror attacks in France, her anti-immigration stance and emphasis on security seemed to appeal to voters.
If elected, Ms Le Pen had vowed to implement a "battle plan" to combat terrorism and pull out of the EU and the euro, in a bid to restore French sovereignty.
Ms Le Pen hinted that her party may now be renamed to get away from the National Front label, which has been dogged by allegations of racism and anti-Semitism since it was founded by her father.
She failed to secure the support of the French people but Ms Le Pen's rise to the top has revealed widespread dissatisfaction with the status quo.
Mr Macron will face a battle to win over those who longed for the far-right to shake up French politics.
