Sarina Wiegman's squad maintained their composure to prevail in a tense penalty shootout as Chloe Kelly converted the crucial penalty kick following two vital saves from Hannah Hampton.
Alessia Russo's equalizer in the second half had revitalized England's quest to defend the Euro title after Mariona Caldentey's opening goal in the 25th minute for Spain.
Kelly's winning kick ignited jubilant celebrations throughout England, while the Prince of Wales and British Prime Minister Keir Starmer joined the festivities in the stands at St Jakob-Park in Basel.
Prince William celebrated with his daughter, Princess Charlotte, before congratulating England's players on the field.
England's 3-1 victory in the shootout avenged their loss to Spain in the 2023 Women's World Cup final in Australia.
King Charles praised Wiegman's team for their significant win and immediately set their sights on the World Cup in 2027.
"I extend my heartfelt congratulations to you, your manager, and your entire support team for winning the Euros 2025," the King stated on social media.
"For more years than I can remember, England fans have chanted that famous phrase 'football's coming home'.
"As you return home with the trophy you secured at Wembley three years ago, it fills me with great pride that, through your sporting talent and exceptional teamwork, the Lionesses have made those words a reality.
"For this, you have my family's deepest appreciation and admiration.
"Moreover, you have demonstrated through your actions in recent weeks that no obstacle is too great to turn defeat into victory, even as the final whistle approaches.
"Well done, Lionesses. Your next challenge is to bring home the World Cup in 2027 if you can!"
Starmer congratulated the Lionesses for making history with their second consecutive Euro title.
The Lionesses are the first senior English national football team to triumph in a major tournament abroad.
'You have made the nation proud'
England's men's team won the 1966 World Cup at home, and the Lionesses secured the Women's Euro at Wembley in 2022.
"Champions! Congratulations, Lionesses - what a team. What an incredible game. What excitement," Starmer posted on X.
"You showed resilience when it mattered the most, and you've made the nation proud. History makers."
While Kelly and her teammates celebrated their victory in Switzerland, back home, street parties, pubs, and bars were filled with England fans cheering for their team.
Supporters gathered at Boxpark Croydon in south London, erupting in joy when Kelly scored her penalty.
Ecstatic fans danced on benches, waved England flags, and threw drinks into the air as the ball hit the net.
Football Association chief executive Mark Bullingham announced that a victory parade in London on Tuesday would "provide England fans an opportunity to celebrate with the players."
"Our history-making Lionesses are champions of Europe for the second consecutive time, and they have become the first England Senior team in history to win a tournament overseas," he remarked.
"We are immensely proud of all the players, Sarina, and the support team who have contributed to this remarkable achievement.
"They have all worked incredibly hard, and we know the nation shares our pride. The victory celebration in London on Tuesday will allow England fans to celebrate with the players and be part of history.
"We've received tremendous support from our fans both in Switzerland and at home throughout the tournament, and we look forward to celebrating together and creating lasting memories."