The historic market town has carried off back-to-back wins to lift the coveted accolade voted for by local people in lifestyle magazine Muddy Stilettos.
The 2022 award was carried out in association with estate agents Strutt & Parker.
Market Harborough was praised by people for its shops, food options, nearby attractions, schools and housing options.
Harborough MP Neil O’Brien said: “Market Harborough is a fantastic place to live, work, visit and invest.
“It has everything you’d want and need in terms of shopping, amenities, great schools and wonderful people, so it’s not hard to see why it has won this award yet again.
“The sense of community spirit is also incredibly strong, as we saw over the last couple of years in particular where people really rallied around one another to look after and support each other,” said Neil, who lives near Market Harborough.
“So many people work hard to ensure Market Harborough is a great place to live - from the council to local community groups and volunteers such as Market Harborough in Bloom.
“It all makes such a difference and I pay tribute to them all for their ongoing effort and commitment to our superb Market Town.”
Cllr Phil King, who leads Harborough District Council, said: “This is a well-deserved accolade for Market Harborough.
“I’m also delighted to see Kibworth Beauchamp in the top eight as well.
“That means we are the only Leicestershire District/Borough to have two entries in the top eight,” said Cllr King.
“The council works hard to ensure Market Harborough remains an attractive, vibrant and exciting place to visit.
“We work closely with so many partners on year-round events and festivities – and I’d also like to thank them as well for their outstanding work.”