Labor has won a seventh consecutive term in power in the ACT, with Chief Minister Andrew Barr declaring it an "extraordinary achievement".
ABC's chief election analyst Antony Green says there is no viable path for the Canberra Liberals, led by Elizabeth Lee, to form government.
The Canberra Liberals have won at most 10 seats in the 25-seat Legislative Assembly.
Labor have likely won 10 and cannot win a majority, but will be able to form a governing coalition.
The ACT Greens are on track to win three seats, while two are likely to go to independents.
ACT Labor has governed the territory for the last 23 years, with Andrew Barr the territory's longest serving chief minister.
Labor party faithful watch Andrew Barr speak at headquarters. (ABC News: Jostina Basta)
Mr Barr addressed a jubilant gathering of Labor Party faithful in Canberra, with his victory speech supported by chants of "four more years" and "light rail".
"A seventh term in government is an extraordinary achievement," he said.
Mr Barr said the party would now need to engage with the crossbench, and he was confident of providing a "progressive and stable government" for Canberrans.
"Canberrans have again voted to extend light rail," he said.
Mr Barr thanked all the members of his party, along with his family.
"To every candidate, to every volunteer, we stand here tonight on your shoulders," he said.
And he congratulated the Canberra Liberals on their campaign, in particular Elizabeth Lee.
'Wearing blue not always easy to do'
Addressing the party faithful, Canberra Liberals leader Elizabeth Lee conceded defeat and congratulated Labor for its "incredible feat" of a 27-year government.
"There are few political duos that have forged and maintained a relationship as long as Andrew [Barr] and Shane [Rattenbury], and they certainly have cemented themselves in the history books as they embark, perhaps, on another coalition government," she said.
"I wish them both all the very best as they embark on this new term.
"They say that being a Liberal in Canberra is hard and tonight I think for many of us it is even harder because we came so close."
Ms Lee took full responsibility for her party not "getting over the line".
She thanked her team and Liberal volunteers for "wearing blue" when it's "not always easy to do".
Greens retain the balance of power
To a gathering of party supporters, Greens leader Shane Rattenbury declared that his party "retained the balance of power in the ACT parliament".
Mr Rattenbury said the Greens had "long been change-makers in the ACT" taking on the "hard issues", and would continue to do so.
He said they would continue to fight for action about climate change.
"We do not know all the results here tonight … but it does look as though we will not be able to keep all our Greens MLAs, … one's who've worked their guts out," he said.
Mr Rattenbury said while the Greens could achieve "so much" in the balance of power, they also "very publicly wear the responsibility when the government doesn't go so well".
"We are feeling it tonight and we are going to reflect on this result as a party and how we will choose to exert our influence in the next term of the assembly," he said.
Mr Rattenbury took a moment to acknowledge his partner Louise, who is currently in hospital in intensive care.
He became emotional as he thanked her for the support she'd given him during the campaign.
First independents in 20 years
Thomas Emerson awaiting results earlier in the night. (ABC News: Saskia Mabin)
Thomas Emerson and Fiona Carrick have become the first independents elected to the ACT Legislative Assembly in more than 20 years.
Mr Emerson, as Independents for Canberra's lead candidate, won a seat in Kurrajong and said it was a "remarkable" result for independents.
Ms Carrick secured a seat in Murrumbidgee and said she was "not really into ideology" and would work with any MLAs to get good community outcomes.
Two other new faces in the assembly will come from Brindabella where retiring MLAs Joy Burch and Nicole Lawder have been replaced with Labor's Caitlin Tough and Liberal Deborah Morris.
Ministers Rebecca Vassarotti, Emma Davidson lose seats
Mental Health Minister Emma Davidson (middle) has lost her Murrumbidgee seat. (ABC News: Simon Beardsell)
ACT Greens deputy leader and Environment Minister Rebecca Vassarotti has lost her seat in Kurrajong.
Elected in 2020, Ms Vassarotti told Greens supporters that the loss was not a failure for the party.
"I don't want anyone … to walk out of here thinking we've had a failure tonight," she said.
She went on to say democracy was more than "a couple of votes… [and] more than one person".
Mental Health Minister Emma Davidson has lost her Murrumbidgee seat, while Greens MLA Laura Nuttall hasn't been re-elected in Brindabella.
Ginninderra MLA Elizabeth Kikkert, who was disendorsed by the Canberra Liberals and joined Family First, has also lost her seat.
Emergency Services Minister Mick Gentleman could go
Mick Gentleman may lose his seat. (ABC News: Jostina Basta )
Veteran Labor MLA Mick Gentleman could possibly lose his Brindabella seat.
Mr Gentleman was first elected to the Legislative Assembly in 2004 but lost his seat in the 2008 election.
He was re-elected to the assembly in 2012 and has since served in a number of cabinet positions – most recently as Minister for Fire and Emergency Services, Business, Industrial Relations, Multicultural Affairs and Police and Crime.
Murrumbidgee Liberals MLA Ed Cocks and Yerrabi Greens MLA Andrew Braddock are also still fighting to keep their seats.