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Governor Anandiben Patel administered the oath of office to Kamal Nath.
The governor had on Friday invited 72-year-old Kamal Nath to form the new government in the state.
The Congress on Thursday named Kamal Nath, the nine-time Lok Sabha member from Chhindwara, to head the state Congress Legislature Party, after hours of hectic parleys held by party chief Rahul Gandhi with senior party leaders.
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The results were declared on December 11.
The Congress, which won 114 seats, has secured support of 121 MLAs, including SP (1) and BSP (2) legislators and four independents, to cross the majority mark of 116 seats in the 230-member Assembly.
The BJP, which ruled the state for 15 years, got 109 seats in the elections.
The saffron party’s Shivraj Singh Chouhan was the state’s longest serving chief minister since taking charge in 2005.