His right-wing Fidesz party had 53.1 percent of votes with 98 percent of the count complete, preliminary results show.
The opposition alliance led by Peter Marki-Zay was far behind with 35 percent.
Addressing a huge gathering, Orban said, "We have won a great victory, a victory so great you can perhaps see it from the moon and certainly from Brussels".
"Conservative politics has won, this is not the past, this is the Europe of the future," he told the cheering crowd.
Prime Minister Narendra Modi on Monday congratulated Viktor Orban for winning the parliamentary election and said that he is looking forward to continuing the work with Orban to strengthen the friendly relationship between the two countries.
Taking to Twitter, PM Modi said, "Congratulations, Prime Minister Viktor Orban, on your victory in the Parliamentary elections in Hungary. Look forward to continuing working with you to further strengthen the close and friendly India-Hungary ties."