The voting took place at the UN General Assembly.
The countries on the opposing side stood their ground, despite Trump's threat to cut off funding to them.
Thirty-five countries abstained, while nine tiny countries including Togo, voted along with US.
The resolution insisted that the status of Jerusalem must be resolved through negotiations.
Speaking ahead of the emergency session, Nikki Haley, US ambassador warned the general assembly that the United States "will remember this day".
America will put our embassy in Jerusalem. No vote in the United Nations will make any difference on that.
"But this vote will make a difference on how Americans look at the UN and on how we look at countries who disrespect us in the UN.
"When we make generous contributions to the UN we also have a legitimate expectation that our goodwill is recognised and respected," Haley said.
The status of the Holy City is one of the thorniest issues in the Israeli-Palestinian conflict, with both sides claiming it as their capital.
Written by NEWSTRAWL ONLINE UPDATE
Sodiq Oyeleke is a Media, Human Resources, Project Management and Public Relations Practitioner
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