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25 November 2012, 07:55 | Updated: 26 November 2012, 13:49
The South Korean star's huge hit single has now surpassed the Canadian pop star's previous record.
PSY's music video for breakthrough hit 'Gangnam Style' has officially become the most watched clip on YouTube.
The South Korean rapper overtook the previous record held by Justin Bieber's hit 'Baby', when he broke over 805 million views on the video sharing website this weekend.
'Gangnam Style' current has 806 million views on YouTube, while Justin's signature hit single 'Baby' now has 804 million, after first breaking the record earlier this month.
PSY scored a huge hit worldwide with his breakthrough hit over the past few months, with it reaching number two on the US Billboard Hot 100 as well as number one in numerous countries across the globe.
The rapper performed 'Gangnam Style' live at the American Music Awards 2012 last weekend, teaming up with eighties star MC Hammer for the performance, and the two are now said to be "cooking in the kitchen" on a collaboration.
Watch the video for PSY's 'Gangnam Style: