The test of interception technology was conducted yesterday within China's territory and achieved the "preset goal", China's Ministry of National Defence said.
The test is defensive and does not target any country, China's state-run Xinhua news agency reported.
A ground-based interceptor missile was used to knock out a ballistic missile during the "mid-course" of its flight outside the earth's atmosphere, the Hong Kong-based South China Morning Post reported.
The test was in a location in China, but no other details were given.
The test comes amid months of international tension over North Korea's nuclear weapons and missiles programme and Beijing's firm opposition to the deployment of US interceptor missiles, the Terminal High Altitude Area Defence or THAAD in South Korea to ward off ward off any missile attacks from North Korea.
China apprehends that the powerful radars of the THAAD missiles can monitor the movement of its missiles in the country.
It has also repeatedly sent coast guard vessels into waters controlled by Japan around uninhabited islands in the East China Sea that China claims as its own.
China first tested a ground-based mid-course missile interception in 2010. A second test was conducted in 2013.
China says such technology is needed for its own national defence and security.
Interestingly, the announcement by China comes on a day when India successfully test-fired its short-range nuclear-capable ballistic missile Agni-1 with a strike range of over 700 km from a test range off the Odisha coast.
Weighing around 12 tonnes, the 15-metre-long Agni-1 can carry payloads up to 1,000 kg and is capable of hitting a target beyond 700 km.