The voting down of the controversial Treaty Principles Bill has garnered the attention of international media.
The bill - which sought to redefine the principles of Te Tiriti o Waitangi - sparked a nationwide hīkoi and received more than 300,000 written submissions.
It was voted down in parliament on Thursday, with only ACT supporting it proceeding further.
CNN described the bill as a "right-wing-backed proposal", which went "viral" after video was shared of Te Pāti Māori MP Hana-Rawhiti Maipi-Clarke tearing the bill in two before leading a haka.
The Guardian said the bill had sought to "radically reinterpret New Zealand's founding treaty".
"Lawmakers voted down the controversial bill on Thursday, drawing a line under a particularly strained chapter in the country's fight for Indigenous rights," it reported.
Australia's ABC News noted there was celebration in the chamber as the bill was voted down, from both the floor and gallery.
"Throughout the session, Speaker Gerry Brownlee tried to maintain control, scolding members of the public and ejecting one man from the gallery," it reported.
International news agency Reuters story on the bill was headlined, "New Zealand parliament rejects controversial indigenous law".
The BBC reported the bill sought to "reinterpret New Zealand's founding document".
"Members of the right-wing Act Party, which tabled it, were the only MPs to vote for it at the second reading on Thursday," it reported.