Republican Karen Handel has won Georgia's Congressional 6th District in a closely watched raced that saw millions pouring in from out of state.
Handel, 55, won in a suburban Atlanta district held by the GOP since 1979 despite raising far less money than Democrat Jon Ossoff, 30, in the most expensive House race in US history.
The election at this juncture is very significant as the result will determine whether President Donald Trump's sagging approval ratings will improve or it will prove as a drag on Republicans that could threaten the party's control of the House in the 2018 November midterm elections.
The spending was not enough to overcome Republican criticism of Ossoff, who was branded by Handel as the Democratic establishment's hand-picked candidate and criticized frequently for not living in the district they were competing to represent.
Ultimately, the win could be a good harbinger for the GOP going forward, and may provide a boost for them on their efforts to repeal and replace the Affordable Care Act, with Senate Republicans expected to unveil their health care bill on Thursday.
Former Georgia Secretary of State Karen Handel led Democrat Jon Ossoff by 52.5% to 47.5% with 81% of precincts reporting.
An election in Georgia, seen by many as a referendum on President Donald Trump, has been narrowly won by the Republicans, CNN is projecting.
The margin allows Republicans a sigh of relief after what is being recognised as the most expensive House of Representatives race in USA history, with a price tag that may exceed 50 million dollars (£40 million). She also welcomed a parade of national GOP figures to Atlanta to help her raise money, with Vice President Mike Pence and House Speaker Paul Ryan holding fundraisers following Trump's April visit.
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Individual donations are only revealed when campaign finance filings "itemized" each of their contributions, mostly for those who gave at least $200.00.
As much of the district was drenched by rain and under flash flood warnings, election officials reported few issues at the polls amid steady turnout by early afternoon.
Handel won the conservative-leaning district, which stretches from the outskirts of Marietta to north DeKalb County, by running up big margins in GOP strongholds in places such as east Cobb County and Milton where Republicans have long thrived.
Both parties now confront the same question: What does such a hard-won victory in the Lululemon-and-loafer subdivisions of Dunwoody and Roswell, where Trump prevailed in November, augur for Republicans defending similarly competitive seats outside the South?
Ossoff took to Twitter to urge constituents to "summon everything we've got" and troop to the polls despite rain falling on Georgia's sixth congressional district, as the president reiterated his support for Handel, 55.
But for all Mr Ossoff's fresh-faced enthusiasm and talk of change, it was Republican Karen Handel who has apparently emerged victorious. Handel was a known - if not beloved or maybe just be-liked - figure in the district thanks to her time in statewide office and her repeated unsuccessful runs for other offices.
"There are more than 70 districts more favorable to Democrats than this deep-red district, and Ossoff's close margin demonstrates the potential for us to compete deep into the battlefield", Luján said in a statement. It also suggests that attacks tying more centrist Democrats to the national party, particularly House Minority Leader Nancy Pelosi, can still prove effective. Some alluded to the tens of millions of dollars spent on the race, which ultimately could only pay off for Handel.
Out of the 435 seats in the House, 239 are now held by Republicans. Democrats' attempts to conflate Handel with Trump failed to make a difference in Tuesday's election.
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