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The agreement of Prime Minister Theresa May on the Brexit was rejected by 230 votes – the biggest defeat of a government in place in history.
Deputies voted by 432 votes to 202 to reject the agreement, which defines the terms of Britain's exit from the EU on March 29.
Jeremy Corbyn, a union leader, has just cast a vote of no confidence against the government, which could trigger a general election.
Ms May said she would take the time to debate the motion on Wednesday.
Mr. Corbyn said that the vote of confidence would allow the House of Commons to "decide on the pure incompetence of this government".
A Democratic Unionist party source told Laura Kuenssberg of the BBC that she would support Ms. May in a vote of confidence.
If MPs vote in favor of a no-confidence motion, the government, or anyone else with the majority, will get 14 days to win another vote of confidence. If they can not win that, then general elections will be held.
Some 118 Conservative MPs voted with opposition parties against Ms. May's agreement.
In normal times, such an overwhelming defeat on a vital government bill would be followed by a resignation from the prime minister.
But Ms. May indicated her intention to continue in a statement immediately after the vote.
"The House has spoken and the government will listen," she told MPs.
She proposed party-to-party discussions to determine the way forward for Brexit.
The President of the European Council, Donald Tusk, said he regretted the result of the vote and that he urged the British government to "clarify its intentions regarding the next steps as soon as possible".
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