The Progressive Conservative government led by Premier Ralph Klein won its eighth consecutive mandate going back to 1971, increasing its share of votes and seats in the Legislature relative to the previous election in 1993.

This was the second consecutive election fought on a new set of electoral boundaries, due to an Alberta Court of Appeal decision that was critical of the map created in 1992.

The party won over half the popular vote, and 63 of the 83 seats in the legislature for its eighth consecutive term in government.

The party continued to dominate in Calgary and rural areas, and managed to regain a foothold in Edmonton where it won two seats.

Pam Barrett led the New Democratic Party back into the legislature with two seats (both in Edmonton), despite winning an even smaller share of the popular vote than in 1993.