It is anticipated that the Conservatives' dramatic electoral shock of the Liberals in the Toronto-St. Paul seat would increase political pressure on Prime Minister Justin Trudeau.
The hotly contested by-election was won by candidate Don Stewart by a mere 500 votes.
Given that the PM's party had controlled the parliamentary seat for more than 30 years, it was seen as a Liberal stronghold.
A number of problems, such as population pressures brought on the rising costs of living, have contributed to a notable decline in Mr. Trudeau's popularity.
According to a recent Ipsos survey conducted for Global News, up to 68% of Canadians supported his resignation.
But Mr. Trudeau has always promised to lead his party into the next national election, which is scheduled for October of next year.
The head of the Conservative Party, Pierre Poilievre, called the victory of Mr. Stewart a "shocking upset" and said that the people "voted to axe the tax, build the homes, fix the budget and stop the crime".
Analysts have speculated that the outcome of the Toronto-St. Paul race may portend a difficult general election for the Liberals the next time voters nationwide cast ballots.
Prior to her recent retirement, former Member of Parliament Carolyn Bennett was elected nine times and served as the nation's ambassador to Denmark.
Elections Canada reports that Mr. Stewart received 15,555 votes, or about 42% of the total vote. Leslie Church, the liberal contender, received 14,965.
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