Mehbooba's election for the sixth consecutive term was unanimous, party leaders said.
She thanked party leaders for "reposing their trust and electing me as their president".
"Will work tirelessly to fulfil our shared vision of development, inclusiveness and reconciliation in J&K," she wrote on Twitter.
The PDP leadership met at the official residence of the Chief Minister here for the election of the party president.
A law graduate, 57-year-old Mehbooba took the plunge into mainstream politics of the state in 1996 by joining the Congress, along with her father, at a time when militancy was at its peak in the state.
Thankful to the party in reposing their trust and electing me as their President. Will work tirelessly to fulfil our shared vision of development, inclusiveness and reconciliation in J&K.— Mehbooba Mufti (@MehboobaMufti) December 2, 2017
She emerged from the shadow of her illustrious father Mufti Mohammad Sayeed, who founded the PDP in 1999, to head Jammu and Kashmir as the first woman chief minister of the state last year.
"Under @MehboobaMufti's leadership, the party strives to carry forward its mission of holistic development and stability in Jammu and Kashmir," senior PDP leader and sports minister Imran Raza Ansari said.
The party's Twitter handle posted, "From grassroots politics to emergence as a beacon of hope for young & dis-empowered, your dynamism & all inclusive politics have set new benchmarks & changed the course of polity in subcontinent. May your leadership continue to steer us to newer heights.