Rob Jetten, 38, will have to use all his bridge-building skills to pass laws and see out a full four-year term in office.
He heads a three-party administration made up of his centrist D66, the centre-right Christian Democrats and the centre-right People's Party for Freedom and Democracy.
The parties together hold only 66 of the lower house of parliament's 150 seats, so Jetten will have to negotiate with opposition MPs to find support for every piece of legislation his government wants to pass.
Jetten and his team of ministers were sworn in on Monday by Willem-Alexander in the ornate Orange Hall of the royal palace in a forest on the edge of The Hague.
The king wished the new government good luck "in uncertain times".
A small group of demonstrators from the Extinction Rebellion environmental group protested outside the gates of the palace during the ceremony and sounded sirens as the new ministers lined up for a formal photo.
Following the traditional photo of the new Cabinet on the steps of the palace, the new government plans to begin work with its first cabinet meeting in the afternoon.
In a message on X, Jetten said it was "an enormous honor to be able to get to work as prime minister".
The government was sworn in 117 days after national elections that Jetten's party won by a narrow margin from the Party for Freedom led by anti-Islam MP Geert Wilders.
The final result was decided only after a count of postal ballots after the fourth national election since 2017 in the politically splintered Netherlands.
Jetten's new government took office a day before the fourth anniversary of Russia's full-scale invasion of Ukraine.
He has pledged to continue his country's strong support for Kyiv as it battles the forces of President Vladimir Putin.
Jetten also has said he will continue spending to beef up the Dutch military in times of geopolitical uncertainty.
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