The Revillagigedo Archipelago is a group of volcanic islands off the country's south-east coast, BBC reported on Saturday.
With a protection zone of 150,000 km, it has become the largest ocean reserve in North America.
The move will mean all fishing activity will be banned, and the area will be patrolled by the navy.
It is hoped the move will help populations hit by commercial fishing operations in the area recover.
The park was designated by a decree signed by Mexican President Enrique Pena Nieto. It will also forbid natural resources being extracted from the land or the building of new hotel infrastructure.
The area, which is about 400 km south-east of the country's Baja California peninsula has been described as the Galapagos of North America, because of its volcanic nature and unique ecology.
Sitting on the convergence of two ocean currents, the islands are a hub for open water and migratory species.
It has hundreds of breeds of ocean wildlife, including humpback whales that use the shallow and coastal areas around the islands for breeding.
Last year, the Pacific Ocean site was named as a UNESCO world heritage area.
Mar?a Jos? Villanueva, the director of conservation of WWF in Mexico, described the move as an "important precedent" to the rest of the world, according to local media.
It follows a similar move by Chile, which created an even bigger ocean reserve in 2015.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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