The DPJ has won 300 seats in the 480-seat lower house, ending 50 years of almost unbroken rule by the Liberal Democratic Party (LDP), NHK TV says.
The DPJ says it will shift the focus of government from supporting corporations to helping consumers and workers.
Japan is suffering record unemployment and its economy is struggling to emerge from a bruising recession.
Analysts say voters blame the LDP for the current economic malaise - and are angry enough to opt for change.
The conservative LDP, led by Prime Minister Taro Aso, has governed Japan for all but 11 months since 1955.
source - BBC News
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