Beaten by Tokyo, Berlin and Vienna, Copenhagen nevertheless managed to leave fellow Nordic capitals Stockholm (ranked 10) and Helsinki (ranked 12) in the dust, with Oslo not even making the top 25 list at all.
The magazine's so-called Quality of Life Index ranks the liveability of cities according to how they fare on a variety of metrics including everything from safety and crime levels to the quality of public transport.
The Danish capital has regularly been featured on the list alongside other major cities such as Sydney, Amsterdam and Zurich, and came in at number one in the magazine's 2013 and 2014 rankings.
In 2015, however, Monocle introduced 22 new metrics, a number of which revolved around the cost of living. With the addition of these new metrics Copenhagen slipped to 10th place in 2015, owing to the fact that it is among the world's most expensive cities to live in.
Copenhagen's comeback in 2016 can be partially attributed to the adoption of additional metrics which focus on quality of life around the day, not just during working hours. Its vibrant food scene, safe downtown areas and bicycle-friendly infrastructure helped propel the Scandinavian capital back up the list.
“Copenhagen's desire to let its citizens cycle and swim on clear roads and in clean water has helped it soar back up the rankings. Innovative and inspiring,” noted the magazine.
The full list of the magazine's top 25 cities can be seen below.
18. Hong Kong