After shock results last year, from Britain's vote to leave the European Union to the election of US President Donald Trump, many look to Merkel to rally a bruised liberal Western order and lead a post-Brexit Europe.
Merkel's conservative bloc - her Christian Democrats (CDU) and their Bavarian allies, the Christian Social Union (CSU) - won 32.5% of the vote, making them by far the largest parliamentary group, according to an exit poll for the broadcaster ARD.
Their closest rivals, the centre-left Social Democrats (SPD), slumped to 20.0% - a new post-war low. The far-right Alternative for Germany (AfD) stunned the establishment by finishing third and entering parliament for the first time with 13.5%.
Merkel, Europe's longest-serving leader, joins the late Helmut Kohl, her mentor who reunified Germany, and Konrad Adenauer, who led Germany's rebirth after World War Two, as the only post-war chancellors to win four national elections.
She must now form a coalition government - an arduous process that could take months as all potential partners are unsure whether they really want to share power with her.