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The legislation, which was described by the Prime Minister, Tony Blair, as a "proportionate response to deal with small and evil groups of violent men" whose aim was to wreck the Northern Ireland peace process, makes it easier to prosecute suspected members of banned terrorist organisations.
MPs and peers had been recalled to parliament to pass the legislation after last month's Omagh bombing which killed 28 people in Northern Ireland.
The Criminal Justice (Terrorism and Conspiracy) Act gained Royal Assent after clearing all its stages in the House of Lords early on Friday morning.
Police action awaited
It aims to end difficulties police have faced in bringing prosecutions for membership of the Real IRA, the Continuity IRA, the INLA and the LVF.
The Act also targets people conspiring in the UK to commit crimes abroad. The Act mirrors laws passed by the Irish Parliament.
North and south of the Irish border, people are now waiting to see whether the new legislation will bring about a police blitz on terrorist suspects.
But some MPs continued to criticise the way in which the legislation was rushed through Parliament.
Fury at rushed process
Former Tory minister, Alan Clark, dubbed it "focus-group facism".
He told BBC Radio 4's Today programme: "It's a very dangerous combination. What you're getting is gesture politics."
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He added: "You have serious infringements of civil liberties. That people can be convicted on the word of a senior police officer is ridiculous.
"It's kind of focus group fascism. You know: 'Oh look, there's a great row about this and we must be seen to do something and let's get going and never mind Parliament.' They're a lot of old fogeys. They want to make long-winded speeches."
Labour MP Bob Marshall-Andrews said: "This is a draconian measure.
He went on: "I have never seen a single Bill which so effectively removes civil rights across the board, and that it is done in this way, with MPs having absolutely no time properly to consider it, is bound to make bad law."
But Labour MP Gerry Bermingham said the Bill was straightforward and understandable.
"We had a particular situation here which required a certain amount of speed. The issues themselves were fairly straightforward. I think most MPs actually understood what was going on," he said.
Reserved support
The debate in the Lords opened with protests at the rush.
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Lord Harris of Greenwich, Liberal Democrats' chief whip, said: "We are being asked to give the executive almost absolute power to put the legislation on the statute book without detailed debate in the normal manner."
Conservative Home Affairs spokesman Lord Henley said it was " vital that we present a united front" against terrorism.
Therefore his side supported the Bill - though it had misgivings about the way it was being passed.
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LibDem Lord Holme said his party was most concerned about the clauses aimed at outlawing conspiracy to commit terrorist acts overseas.
He said it seemed these measures had been included simply because the "Home Office could push something through with populist haste".
But the Bill as a whole was, he believed, "timely".
Lords gave the Bill unopposed second and third readings after nearly 11 hours of debate.
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