Civic groups backed by Lai's Democratic Progressive Party (DPP) had sought to unseat 24 lawmakers belonging to the main opposition Kuomintang party, who they accuse of being in cahoots with China.
The KMT, which advocates closer ties with Beijing, controls parliament with the help of the Taiwan People's Party (TPP) and has slammed the unprecedented recall effort as a DPP power grab.
A few hours after polling stations closed across Taiwan, the Central Election Commission's official vote count showed none of the recalls had succeeded.
Recall elections for another seven KMT lawmakers will be held on August 23.
But the DPP needed a minimum of 12 KMT lawmakers recalled to gain temporary control of the parliament.
"Let this political farce end here," KMT chairman Eric Chu told reporters.
"No one can lose an election and then engage in a vicious recall," he said, calling on Lai to "sincerely apologise" and "stop thinking about political infighting".
DPP Secretary-General Lin Yu-chang said the party "humbly" accepts the results.
Insisting the election could not be "reduced to victory or defeat between political parties", Lin said the DPP would "reflect more prudently on the society's response".
Public opinion has been split over the recalls, a legal process that allows voters to oust elected officials before the end of their term.
The campaign targeting KMT lawmakers has dominated politics, newspaper headlines and social media feeds for months.
A KMT bid to recall DPP lawmakers failed to meet the legal threshold.
"It really is a sign that the people who elected these officials in 2024 do in fact feel comfortable with their choice," said Lev Nachman, a political science professor at National Taiwan University.
"The KMT are going to feel very empowered after today."
- Brawls and protests -
Both major parties held rallies in recent days to urge supporters to take part in the election, which had the potential to upend the balance of power in parliament and fuel tensions with China.
Lai, a staunch defender of Taiwan's sovereignty and detested by Beijing, won the presidential election in 2024, but his DPP party lost its majority in the legislature.
Since then, the KMT and TPP have joined forces to stymie Lai's agenda, and slashed or frozen parts of the government's budget.
Contentious opposition bills, including an attempt to expand parliament's powers, sparked brawls in the legislature and massive street protests.
Even if the DPP had taken temporary control of the parliament, analysts said it would have struggled to flip six seats in by-elections to cement its dominance.
In response to the outcome on Saturday, Lai called for everyone to "accept the results" and "move forward in unity".
But political analyst Wen-Ti Sung told AFP: "The era of hyper partisanship is not going to end anytime soon."
"It may get worse before it gets better -- if it gets better," he said, adding China would be feeling "exhilarated" by the recall result.
- China looms large -
The vote suggested the Taiwanese were "tired of self-destructive political struggle and purges", said political expert James Yifan Chen.
And while it wasn't "necessarily a victory for the KMT", Chen said the result was a "vote of no confidence in President Lai".
Taiwan is known for its rough-and-tumble politics, but analysts say the atmosphere has deteriorated dramatically in the past 18 months.
Chu of the KMT has compared Lai's government to Hitler's Nazi regime, while Lai has spoken of "removing impurities" to defend Taiwan's sovereignty.
Beijing has loomed large over the recall vote, with Taipei warning of "visible evidence" that China was trying to interfere in the process.
The KMT's ties with Beijing and frequent visits by its lawmakers to China have raised concerns among critics over Chinese influence on the party.
But the KMT rejects accusations it is beholden to Beijing and insists dialogue with China is needed to ensure peace across the Taiwan Strait.
Communist China has never ruled Taiwan, but Beijing claims the island is part of its territory and has threatened to use force to bring it under its control.
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