In her victory speech, with Bill Clinton smiling by her side, Clinton first thanked her supporters in "every corner of the state," who she said helped her win with their "determination and purpose."
Clinton addressed how she would tackle issues such as student debt, immigration, job creation and women's rights.
She also directed a portion of her speech at young people, calling them the "most tolerant" generation.
"I know what you’re up against," Clinton said. "If you left college with a ton of loans, it’s not enough to make college more affordable. You need help with the debt you already have."
Shortly after her win was announced, Clinton took to Twitter to thank her supporters.
In his concession speech, Democratic rival Sen. Bernie Sanders acknowledged the progress his campaign has made with voters.
"Five weeks ago, we were 25 points behind in the polls," he said. "We have made some real progress."
Sanders then said that the "corrupt campaign finance system" is "undermining" the American political system.
"We will not allow millionaires and their super PACs to continue to buy elections in the United States of America," he said.
In a statement released by his campaign, Sanders said he was "very proud" of the campaign he and his team ran in the state.
“I am also proud of the fact that we have brought many working people and young people into the political process and believe that we have the wind at our back as we head toward Super Tuesday," Sanders said. "I want to thank the people of Nevada for their support that they have given us and the boost that their support will give us as we go forward."
Female caucus-goers in the state are favoring Clinton over Sanders. Moreover, about 60 percent of Clinton supporters in Nevada are women. For Sanders, 46 percent of his supporters in the state are female.
Clinton is scoring higher among more educated and higher-income caucus-goers, while Sanders is prevailing among those with lower incomes and less schooling.
Sanders is winning 77 percent of independents -- his best showing in this group to date, according to entrance poll results. About 20 percent of caucus-goers in Nevada identify as independents.
About 53 percent of Hispanics are supporting Sanders. Nearly 20 percent of overall caucus-goers are Hispanic, according to the entrance polls.
Clinton won 64 percent of the Hispanic vote in Nevada in 2008, when she beat Barack Obama by 7 percentage points.
Clinton trounced Sanders among black supporters, with about 76 percent supporting her compared to 23 percent supporting Sanders. Blacks will make up a much larger share of voters in the South Carolina primary.
Nevada is the first state on the Democratic calendar with significant turnout among minorities. Non-whites account for more than a third of caucus-goers.
About 71 percent of those caucusing for Sanders are participating in the state's caucuses for the first time.
Seventy-seven percent of caucus-goers said in an entrance poll that Clinton was the candidate that could win in November.
Sanders was chosen by 85 percent of caucus-goers as “honest and trustworthy” versus 15 percent for Clinton, based on entrance poll data.
Thirty-five delegates were up for grabs in Nevada.
Clinton will now be heading to Texas and then to South Carolina next week for the Democratic primary.