The Black Caps' World Test Championship victory was proof "nice guys can finish first", the Deputy Prime Minister said as Parliament passed a motion to "heartily" congratulate the team.
The Black Caps produced a stunning sixth and final day to beat India by eight wickets with Ross Taylor hitting the winning runs in a partnership with captain Kane Williamson who scored an unbeaten half century.
In the House Deputy Prime Minister Grant Robertson moved that "this House heartily congratulate the Black Caps on winning the International Cricket Council's inaugural World Test Championship".
Robertson, who is also Minister of Sport and Recreation, said it was a contest where a "team of five million against those of a team of one billion saw the little guy come out on top".
The Black Caps had a team culture that "exemplifies the very best of Aotearoa", he said.
"The resilience of this squad has been incredible. They are now the number one - ranked one-day international team in the world and are now the world champions of test cricket. We are so very proud of them.
"This is truly a golden age of cricket in our country and I'm sure that they will inspire young boys and girls across the generations.
"Last night, we saw that nice guys can finish first. On behalf of the Government, I say congratulations and thank you to the Black Caps, world test cricket champions."
The motion was supported by Labour, National, the Greens and Act. Te Paati Māori was not present.
National MP and Shadow Leader of the House Chris Bishop, who stayed up all night to watch the game played in England, said the match should be recorded as "one of our greatest ever sporting victories".
"Today New Zealand stands on top of the world, test champions. We are so proud of what you have achieved," said Bishop, sporting a "Steady the Ship" cap in the House, along with Labour MP Kieran McAnulty, who also pulled an all-nighter.
The two are co-captains of the Parliamentary cricket team.
Bishop said most importantly, they were proud of how the Black Caps played the game.
"After Grant Elliott smashed that six to win the semi-final in the Cricket World Cup in 2015, the first thing he did was go and hug a devastated Dale Steyn. And Kane Williamson, I note last night, went straight over to Virat Kohli after the winning runs were scored this morning."
Bishop said it was fitting for Taylor to hit the winning runs, given his mentor the late Martin Crowe played the game "the way this Black Caps team plays the game".
Green MP Ricardo Menendez March congratulated the team, recognising their "humility and sportsmanship".
"I think that the win today should be all the sweeter for New Zealanders, because of how this team have conducted themselves in both victory and defeat over the past few years.
He also acknowledged Luteru Taylor, who recently spoke about how his principal wouldn't pronounce his name correctly when he was younger.
"Now he's speaking about him being his authentic self. I hope we continue working so that all of our sportspeople—people of colour and our trans folk included—can be their authentic selves in the field."
Menendez March also noted Aotearoa hosting the women's World Cup next year, and the opportunity for both premier teams to soon be world champions, and called for pay parity in sports.
Act MP James McDowall said the Black Caps "demonstrated exceptional sportsmanship and character and are role models for all cricketers here in New Zealand young and old".
"I also hope that this victory inspires more young people to enjoy the sport, especially test cricket."
Earlier, Prime Minister Jacinda Ardern said the Black Caps had "made New Zealand proud".
"This was a masterful performance from a team at the top of their game and on top of the world.
"Kane Williamson and the team leadership have built a brilliant and humble squad who have become an inspiration to many New Zealanders."