The former NDP MP and MLA told her supporters that in spite of the result, they brought people together to talk about issues that matter, from small business to aboriginal issues.
She said her team contributed to an important dialogue in the city even if it ended in placing second to Brian Bowman.
"It's culminated in this result, which we accept absolutely," she said. "We didn't make it, but we did make a difference," she said, to cheers from her supporters. "And we talked to so many people."
Wasylycia-Leis said the ideas she proposed are still good ideas and she will pursue them.
"I will continue to fight with every breath to build a stronger city, a city that works based on those fundamental values of openness, inclusivity and fairness."
Wasylycia-Leis said she has already called Bowman to congratulate him on a 'decisive victory.'
"You deserve the votes you got. You ran a hard campaign, you ran a solid campaign. We disagreed on many issues but I respect the path you took. I respect the choices of voters. And I will work with you to help build a city that works."
Wasylycia-Leis lost to Sam Katz in 2010. She said she will not run again and that loss "hurt a bit more than this one."