Tea Obreht has been awarded the 2011 Orange Prize for Fiction for her debut novel The Tigers Wife.
The judges praised the 25-year-old, who is the youngest author to have won the prize, as a truly exciting new talent for her exceptional book.
Obrehts powers of observation and her understanding of the world are remarkable, the BBC quoted broadcaster Bettany Hughes, chair of the judges as saying.
The judge also said that Serbian-American author brought the Balkan conflict alive as her story of a young doctor who traces the life of her grandfather was set in the Balkans.
By skilfully spinning a series of magical tales, she has managed to bring the tragedy of chronic Balkan conflict thumping into our front rooms with a bittersweet vivacity.
Obreht celebrates storytelling and she helps us to remember that it is the stories that we tell about ourselves, and about others, that can make us who we are and the world what it is, she added.
The 30,000 pounds annual prize recognizes the work of fiction written in the English language by women
The author was also featured in the New Yorkers Top 20 Writers under 40 Fiction Issue and her debut novel was published in March this year.