The new sanctions resolution, which was spearheaded by the United States and came after three months of tough negotiations with fellow veto-wielding council member China, passed by a 15-0 vote.
The resolution demands that North Korea "abandon all nuclear weapons and existing nuclear programs" and takes aim at the state's exports of coal -- its top external revenue source.
Under the resolution, North Korea will be restricted from exporting beyond 7.5 million tons of coal in 2017, a reduction of 62 percent from 2015.
Samantha Power, the US ambassador to the United Nations, said that the resolution would strip the regime of more than $700 million in hard currency, dramatically reducing the money it can spend on nuclear and ballistic weapons.
Power, speaking to reporters with her counterparts from US allies South Korea and Japan, called the resolution "the strongest sanctions regime the Security Council has imposed on any country in more than a generation."
"So long as the DPRK makes the choice it has made, which is to pursue the path of violations instead of the path of dialogue, we will continue to work to increase the pressure and defend ourselves and allies from this threat," said Power, referring to the North by its official name, the Democratic People's Republic of Korea.
- China joins in pressure -
UN Secretary-General Ban Ki-moon urged all countries to enforce the resolution.
"It sends an unequivocal message that the DPRK must cease further provocative actions and comply fully with its international obligations," said Ban, who has flirted with entering politics in his native South Korea after his term ends in a month.
Ban said he was still committed to "sincere dialogue" to resolve the nuclear issue and stood by calls to provide humanitarian assistance to ease the suffering of ordinary North Koreans.
China is North Korea's primary ally and one of the few markets for its coal.
China has traditionally protected North Korea diplomatically, believing that Kim Jong-Un's regime is preferable to its collapse, but has increasingly grown frustrated by the neighboring state's defiance.
"Certain parties increase their military presence and scale up military exercises, thus intensifying the confrontation," he said at the Council.
"This situation must be changed as soon as possible," he said.
- Expanding breadth of sanctions -
The UN Security Council resolution condemns "in the strongest terms" North Korea's test on September 9 -- the communist state's second just this year.
Pyongyang claimed at the time it had made major strides in its efforts to fit a miniaturized warhead on a rocket that could reach the United States.
North Korea insists that its nuclear weapons are a deterrent to US "aggression" and has brushed aside earlier sanctions, which have notably targeted its weapons exports and access to financial markets.
In addition to coal, the Security Council banned North Korea from exporting certain metals including copper, silver, zinc and nickel that bring in an estimated $100 million a year, as well as statues and helicopters.
The Security Council also added 10 companies and 11 individuals, including the former North Korean ambassadors to Egypt and Myanmar, to a blacklist under which their travel is restricted and assets frozen due to their alleged role in Pyongyang's military programs.
The outgoing US administration of President Barack Obama has generally favored dialogue over conflict but has taken a tough line on North Korea after Pyongyang rebuffed early overtures.
Power said that the latest resolution was groundbreaking in that it also took North Korea to task for its human rights violations.
In another rare clause, the resolution threatens North Korea with some losses of diplomatic rights at the United Nations if it violates resolutions.