Mary Landrieu held off Suzanne Haik Terrell, who conceded the election late on Saturday evening.
The final result of the 2002 US Congressional elections gives the Democrats some consolation after a poor showing, but does not affect the overall balance of power.
In the new Senate, the Republicans will hold 51 seats to the Democrats 49.
With an estimated turn-out of 45%, Ms Landrieu won by only a few percentage points.
The run-off was marked by a series of negative advertisements, as the candidates, both from New Orleans, tried to undermine each other's campaigns.
Ms Terrell accused Ms Landrieu of losing her Catholic faith, because she supports abortion in some circumstances.
Ms Landrieu said that Ms Terrell would be a mere rubber stamp for US President George W Bush.
The president had been in Louisiana on Tuesday to give his backing to Ms Terrell.
The Democrat had won the first round of voting on 5 November, but her 46% share of the poll fell short of the majority required under Louisiana election law.