The 23-year-old star picked up the trophy for for his third official mixtape, 'Coloring Book'.
The Chicago native was awarded the coveted Best New Artist award from presenter Jennifer Lopez.
During his acceptance speech, Chance thanked his frequent collaborator Peter Cottontale and his manager Pat, who have helped him remain independent of a major label since embarking on his career in 2012.
"I want to thank God for putting amazing people in my life, like Pete and Pat, who have carried me since 2012," he said. "I know a lot of times I talk about my independence and people think it has something to do with..."
Chance beat out Maren Morris, Kelsea Ballerini, The Chainsmokers and Anderson .Paak in the category.
He not only broke a lengthy dry spell in the process but he also made Grammy history by snagging best rap album at the ceremony as the first time the accolade has gone to a streamed-only album.
The singer, nominated in the seven categories, also picked up statuette in the best rap performance category for "No Problem" with 2 Chainz and Lil Wayne.
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