President Donald Trump called Thursday's operation a "very, very successful mission".
Its official name is the Massive Ordinance Airblast Bomb but it is widely known in the United States military as the "mother of all bombs". The target was close to the Pakistani border.
The strike hit a system of tunnels and caves that IS fighters had used to "move around freely, making it easier for them to target USA military advisers and Afghan forces" nearby, White House spokesman Sean Spicer said.
General John Nicholson, the head of USA and worldwide forces in Afghanistan, said the bomb was used against caves and bunkers housing fighters of the Islamic State in Afghanistan, also known as ISIS-K.
According to US officials, most of the members of the local Islamic State branch are Pakistani and Uzbek militants.
On Twitter, Afghanistan President Ashraf Ghani approved of the strike, saying it was "designed to support the efforts of the Afghan National Security Forces (ANSF) and U.S. forces. conducting clearance operations in the region".
Afghanistan's ambassador to the US, Hamdullah Mohib, said the colossal MOAB was dropped after fighting had intensified over the last week.
"I want 100 times more bombings on this group", he told The Associated Press.
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"People have started leaving the area fearing more bombings", he said.
"Afghan and foreign troops closely coordinated this operation and were extra cautious to avoid any civilian casualties", it said.
US State Department spokesman Mark Toner said Washington is "working with the government of Afghanistan and our partners in the region in order to deny any terrorist organization - that includes al Qaeda as well - a safe haven or any kind of material support on the ground".
Testifying before the Senate Armed Services Committee in February, General John Nicholson warned of a stalemate in the country.
The MOAB is a custom-made Air Force weapon that has been in the arsenal for more than a decade but had never been used on the battlefield, although it was available throughout the Iraq war.
The Taliban on Friday also issued a statement condemning the strike.
Former US state department spokesman PJ Crowley told BBC Radio 4's Today programme the use of the weapon was an indication of how Mr Trump had given "greater leeway to the military in terms of what it can do" in Afghanistan and Syria.
"The Secretary General and I had a productive discussion about what more North Atlantic Treaty Organisation can do in the fight against terrorism", Trump said.