Lorde has won two Grammys for song of the year and for best pop solo performance.
Lorde won song of the year for Royals, which she performed a stripped-down version of as the second act of the 56th Grammy Awards in Los Angeles today.
Royals co-producer Joel Little described the song of the year win as "intense", and said it was a "complete honour".
Lorde took to the microphone and said she would "forever owe" Little, who had nurtured her through her early songwriting years.
"Thank you to everyone who has let this song explode, it's been mental," the Kiwi performer, whose real name is Ella Yelich-O'Connor, said.
Royals beat Pink and Nate Ruess' Just Give Me A Reason, Bruno Mars' Locked Out Of Heaven, Katy Perry's Roar, and Macklemore and Ryan Lewis' Same Love to win the coveted award.
A few hours after the wins, Lorde tweeted about her success: "I am so grateful for the attention my work has received tonight and this year. Thankyou and goodnight."
She also sent out praise to fellow singer Taylor Swift, tweeting "very proud of @taylorswift13 tonight. One of the most masterful performers I’ve seen".
Lorde was denied a Grammy in two other categories: record of the year and best pop vocal album.
Daft Punk's Random Access Memories won album of the year and best pop vocal album went to Bruno Mars' Unorthodox Jukebox.
Early in the evening Lorde won the Grammy Award for best pop solo performance, becoming the youngest New Zealander to win at the world's biggest music awards.
"This is the one thing that I did not expect the most about tonight, so thank you so much," she said.
Lorde thanked her fellow performers in the category, Bruno Mars, Sara Bareilles, Katy Perry and Justin Timberlake, and said their work had inspired her.
Prime Minister John Key congratulated Lorde and Little, both by tweet and in a statement.
"This Grammy success underlines a fantastic year for Lorde and Joel Little. They have achieved something no other New Zealander has," Key said in a statement this evening.
"Lorde is a phenomenal talent and an inspiration to all young New Zealanders.
"At just 17 years old she has a great future. Her success today has made us all very proud."
Man Booker prize winner Eleanor Catton were among those tweeting congratulations, as was Key:
And New Zealand rises to its feet, @lordemusic has won her first Grammy for best pop solo performance. Awesome!
— John Key (@johnkeypm) January 27, 2014
— Eleanor Catton (@EleanorCatton) January 27, 2014
Lorde performed her song on a darkly lit stage with stone angels behind her just minutes into the evening.
There have been at least 10 other Grammy wins for New Zealand throughout the years.
Kimbra won record of the year and best pop duo/group with Australian musician Gotye last year.
The first win was by Dame Kiri Te Kanawa for The Marriage of Figaro, in 1984.
Others include Wellington-based composers Flight of the Conchords' Bret McKenzie and Jemaine Clement in 2008, The Lord of the Rings screenwriter Fran Walsh in 2005 for the lyrics to Into the West, and jazz arranger Alan Broadbent in the 1990s.
- Fairfax Media