Putin has now topped the list every year since 2013. Trump, meanwhile, jumped 70 spots from his ranking in 2015.
"The world’s most powerful person for four years running, Russia’s president has exerted his country’s influence in nearly every corner of the globe; from the motherland to Syria to the US presidential elections, Putin continues to get what he wants," Forbes wrote, adding that Putin’s "reach has magnified in recent years."
"In second place, President-elect Donald Trump has a seeming immunity to scandal, both houses of Congress on his side, and a personal net worth in the billions," Forbes wrote.
German Chancellor Angela Merkel came in third; Chinese leader Xi Jinping came in fourth; Pope Francis finished fifth.
Trump's choice for secretary of State, ExxonMobil CEO Rex Tillerson, came in at No. 24, the Hill reported.
Only two media moguls made the list: 21st Century Fox Executive Chairman Rupert Murdoch at No. 35 and Michael Bloomberg, CEO of his eponymous company, at No. 55.