Penn rose from sixth to fourth place in the annual U.S. News and World Report rankings, released late last month.
The school tied for fourth with the California Institute of Technology, the Massachusetts Institute of Technology and Stanford University.
Princeton University and Harvard University tied for first place, while Yale University took third.
Responding to the announcement, Penn President Amy Gutmann said she sees the rankings as a valuable recruiting tool, despite the increasing criticism the magazine has drawn in recent years for its methodology.
"While we try not to put too much stock in the U.S. News & World Report and other rankings, we know they are used by prospective students and their parents in the decision-making process," she wrote in a memo to the Board of Trustees.
Among liberal arts colleges, Williams College beat out Amherst College for the top spot.
In the category of undergraduate business schools, Wharton came in first place again.
The Quick Comparisons lists for national universities highlighted Penn's overall 98-percent freshman retention rate.
The University also ranked 10th on the Best Values list.
