Greste and Egyptian-Canadian Mohamed Fadel Fahmy were sentenced to seven years, while producer Baher Mohamed received two sentences -- one for seven years and another for three years.
The three were among 20 defendants in a trial that has triggered international outrage amid fears of growing media restrictions in Egypt.
Nine defendants who were tried in absentia, including three foreign journalists, were sentenced to 10 years, while two defendants were acquitted.
Since the army ousted Islamist president Mohamed Morsi in July 2013, the authorities have been incensed by the Qatari network's coverage of their deadly crackdown on his supporters.
They consider Al-Jazeera to be the voice of Qatar, and accuse Doha of backing Morsi's Brotherhood, while the emirate openly denounces the repression of the Islamist movement's supporters which has killed more than 1,400 people.
Watch: Egypt sentences Al-Jazeera journalists to prison