The 17-year-old, who heard the news while she was in a chemistry lesson at school in Birmingham, central England, said she was honoured to be the youngest person and the first Pakistani to receive the accolade.
"The award is for all the children who are voiceless, whose voices need to be heard," Malala told a press conference, held at the end of the school day so she wouldn't miss class.
Malala arrived in Britain from Pakistan for medical treatment after being shot in the head by a Taliban fighter in October 2012, an attempt to silence her vocal advocacy of the right of girls to go to school.
Standing on a box so she could reach the podium at Birmingham's main library, the teenager joked that winning the Nobel would not help her upcoming school exams.
But she told an audience that included her parents and two younger brothers: "I felt more powerful and more courageous because this award is not just a piece of metal or a medal you wear or an award you keep in your room.
"This is encouragement for me to go forward."
The Norwegian Nobel Committee gave the award to Malala and Indian activist Kailash Satyarthi for their struggle against the repression of children and young people and "for the right of all children to education".
Malala said she had already spoken to Satyarthi -- she joked that she could not pronounce his name -- to discuss how they could work together, and also try to reduce tensions between their two countries.
To that end, she urged Indian Prime Minister Narendra Modi and Pakistani Prime Minister Nawaz Sharif to attend the Nobel award ceremony in December.
Former British prime minister Gordon Brown, the United Nations special envoy for global education, voiced delight at the Nobel victory for Malala and Satyarthi.
"They are two of my best friends and two of the greatest global campaigners who deserve the Nobel Peace Prize for their courage, determination and for their vision that no child should ever be left behind," Brown said in a statement.
After visiting her in hospital, Brown took up Malala's cause with a petition for universal primary education handed to the Pakistani government on a day he named Malala Day, and later arranging for her to speak at the United Nations.
Britain's International Development Secretary Justine Greening also congratulated the joint winners saying the prize was "richly deserved".
The reaction in the streets of Birmingham, which has a large minority population of Pakistani origin, was also overwhelmingly positive.
"I like her. She's confident, speaking up for herself, for women," said 30-year-old Zara Hussain as she waited at a bus stop in Birmingham holding a baby.
"She could be president (of Pakistan) if she carries on."
Imam Usman Mahmood of Birmingham central mosque, which with 6,000 followers is one of the biggest in the city and was visited by Malala and her family, also expressed his delight.
"It means that any person who puts their mind to something, they can achieve their goals. We wish her the best when she carries on with her life and that she keeps on going the way she is," he said.
But local estate agent Basharat Hussain, 30, said: "I personally think she shouldn't have got it.
"She's inspiring but I think they're using her for political motives, she's been used by different organisations and governments."
The global spotlight has provoked a backlash in parts of Pakistani society, with some accusing Malala of acting as a puppet of the West, while the Taliban have renewed the threat to her life.
There have also been concerns about exposing a child to such a level of public exposure.
"I used to say that I think I do not deserve the Nobel peace prize. I still believe that," Malala said.
"But I believe it is not only an award for what I've done but an encouragement for giving me hope, for giving me the courage to go and continue this."
COMMENTS (16)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
it is considered to be a great acheivement not just for Malala but all Pakistani nation. because this award gives a message of peace and developement of education to the rest of the world.
@Kolsat: Threat to Malala is not just from the talibans. It is also from so-called scholars like Orya Maqbool Jan and Ansar Abbasi.
If this is the requirement of Nobel prize. Why not give it to the doctor who actually saved her life. Who did something rather reading, giving speeches, doing world tours and writing books on how to heal a skull with a bullet in it.
There are thousands more who deserve this award than Malala in Pakistan. Her book "I am Malala" is banned in Pakistai schools due to many controversial things co-written with British journalist Christina Lamb which even Malala is not aware of.
http://www.thenews.com.pk/Todays-News-2-209499-Malala-exposes-herself-to-criticism
http://www.theguardian.com/world/2013/nov/10/malala-yousafzai-book-banned-pakistan-schools
What an irony for the Pakistani society ... an Ahmadi by faith, Dr Salam was the victim of religious intolerance sanctioned by the Pakistani Constitution ... and Malala is the victim of physical violence in Pakistan ...
Malala called on the Indian and Pakistani prime ministers to attend the award ceremony for the sake of peace.
This is great. I am floored. She is such an excellent statesman and diplomat. On 2nd thought, I take it back. She is sincere and honest to the core. Diplomats and statesmen are often not.
Nobel Price Committee made their best choice. I am happy for her, proud of her and wish her the best. Even when she says jokingly that she cannot pronounce Kailash Satyarthi's name correctly, it shows her innocence and brings her out the "Gul Makai" in her. She is still a child, but a courageous child with deep devotion for a deserving cause.
I hope that both Modi and Nawaz honor her wishes.
Malala & OBL will be taught in History books of Pakistan in coming years ,and they have remotely no idea what perception and history they making for coming generations
I personally would like our Prime Minister Modi to attend, I believe Malala is someone very special.
Congrats malala love from India to you...modi also congratulated her
I think both Kailash and Malala should go as the head of their delegations and stop the senseless border skirmishes. The joint award proves that not only we are the same but our problems are also the same and their solutions would be the same. Political leaders can make inflammatory statements for their political gains and cheap publicity but we need cool heads not rash statements. Let us serve humanity and not be a pompous arrogant warmonger. I have not named names but if the shoe fits wear it!
She is also the second Pakistani to receive a Nobel prize; the first was Prof Dr Abdul Salam (Physics).
Pakistan Paindabad.
Malala: Congratulations from all of us people. Not only the Pakistani nation but the entire Ummah is proud of you. Amazing, amazing achievement for the youngest in history, only 17 years old, and a female to win the Nobel Prize and that too from such a failing, regressive, backward state as Pakistan. What irony, what heroism, what performance.