The UK does not classify Palestine as a state, but says it could do so at any time if it believed it would help peace efforts between the Palestinians and Israel.
David Cameron, UK prime minister, abstained from the vote, which was called by an opposition MP, and Cameron's spokesman earlier said that foreign policy would not be affected whatever the outcome.
However, the vote was closely watched by Palestinian and Israeli authorities who are seeking to gauge European countries' readiness to act on Palestinian hopes for unilateral recognition by UN member states.
The final motion, which passed by 274 votes to 12 at the House of Commons, the lower house of the parliament, stated "that this house believes that the government should recognize the state of Palestine."
The vote comes just as Sweden's new centre-left government is set to officially recognize Palestine, a move that has been condemned by Israel, which says an independent Palestine can only be achieved through negotiations, Al Jazeera reported.
Earlier on Monday, violence flared in East Jerusalem when hundreds of Israeli police forces raided the al-Aqsa mosque compound and clashed with Palestinian worshippers.