The party that Macron founded just 14 months ago has caused a political quake, even if the winning score was considerably lower than the 470 seats predicted by some pre-vote surveys.
The parliamentary boost also strengthens Mr Macron's hand on the European stage as the EU heads into negotiations on Britain's departure from the bloc.
The president's office said in a statement that he accepted the resignation and immediately renamed Prime Minister Edouard Philippe and tasked him with forming a new government by Wednesday evening.
"It is down to the President's desire to breathe new life into democracy and to the French people who wanted to give parliament a new face", he added.
Macron's detractors point to a record-low turnout of just under 44 percent in Sunday's polling, saying he can not claim to enjoy a deep vein of support.
Macron's En Marche! and his centre-right allies from MoDem made off with about 360 seats in the country's parliament.
"I do not lose sight of the objective to create a group in the National Assembly during the next months, which will be a group where we will agree on two, tree subjects of principal, keeping at the same time our independence and peculiarities", Le Pen said during a press conference in France's northern Henin-Beaumont commune.
She insisted the party still had a key role to play, saying: "We are the only force of resistance to the watering down of France, of its social model and its identity". "The president of the Republic has all the powers", Jean-Christophe Cambadelis said late on Sunday after announcing he would step down as party chief.
"The left's defeat is unavoidable, the rout of the Socialist Party is irrevocable".
The Republicans and their allies fared better, hanging on to 130 seats, down from over 200 in the last parliament, and remaining the main opposition party.
Retired Justice Karnan arrested in Coimbatore
His plea for review was declined on technical grounds without its coming before the seven judges bench. According to reports reaching here, the former judge will be brought here and then taken to Kolkatta.
The election saw a record number of women voted into parliament, due largely to Macron's decision to field a gender-balanced candidate list.
"The task he faces is huge", he said.
The new intake of lawmakers has very little political experience - 425 of the 577 have never been members of parliament.
Macron's centrists easily beat the traditional left and right parties that have led the National Assembly for decades.
Jean-Luc Melenchon's new hard-left movement, France Unbowed, was projected to win around 19 seats.
Only 42.64% of the some 47 million eligible voters cast their votes in the second round of the French National Assembly elections, a record low turnout.
The President wants to tackle stubbornly high unemployment rates by loosening labour laws, but he runs the risk of triggering mass protests from workers.
Marine Le Pen had said her father would not be welcome at the meeting of the party's leadership.
Meanwhile, German Chancellor Angela Merkel congratulated Macron on winning a "clear parliamentary majority" in elections Sunday, her spokesman said.
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