Election officials in the Cayman Islands say the opposition party has won nine of 18 seats, one short of a majority needed to control the British territory's legislature.
The results released Thursday mean that attorney Alden McLaughlin's People's Progressive Movement will be the dominant force in a coalition government.
Negotiations to choose the next leader are set to begin. Political analysts say McLaughlin is the presumed pick.
A former premier who was ousted from leadership last year amid a corruption probe won re-election to his seat. But McKeeva Bush's United Democratic Party won just three seats overall.
Outgoing Premier Juliana O'Connor-Connolly was the lone member of her party to win re-election.
Independents will fill the rest of the seats, including four candidates endorsed by political advocacy group Coalition for Cayman.