The general election marked a pivotal moment in New Zealand's electoral history as it was the first election to utilize the mixed-member proportional (MMP) representation system, a reform aimed at providing fairer representation in the House of Representatives. The introduction of MMP followed a nationwide referendum where New Zealanders voted overwhelmingly for this new voting system as a response to perceived inequities in the previous first-past-the-post system. On election day, voters had two votes: one for their preferred political party and another for their local candidate. This dual-voting process was designed to reflect a range of political opinions more accurately.

The election results led to a significant reconfiguration of the political landscape. The National Party, led by Jim Bolger, secured a plurality but did not gain enough seats to govern alone. Consequently, Bolger's party entered into coalition negotiations with Winston Peters's New Zealand First party, which emerged as a kingmaker with considerable influence due to its position as a minor party that garnered a significant vote share. This coalition agreement was notable for combining traditionally opposing political ideologies, marking a shift toward more collaborative governance.

The aftermath of the election saw the establishment of a stable coalition government that faced various challenges and successes during its term. The implementation of MMP fundamentally changed how New Zealanders interacted with their political system, paving the way for a more inclusive political dialogue and restructuring of power dynamics among political parties and representatives.