The island was also ranked 43rd in the sub-category of best improvers from 2008-2010 to 2015-2017 with a change of 0.265 points on the score.
The report is based on the pooled results from Gallup World Poll surveys from 2015-2017.
'Finland has vaulted from fifth place to the top of the rankings this year, ' said the report's authors, although they noted that the other three Nordic countries (plus Switzerland) have nearly interchangeable scores.
Pakistan has been ranked 75th, ahead from India (133rd), among 156 countries in United Nations 2018 ranking of the world's happiest countries.
India which was on the 122 place on the last year's list, dropped its position this year 11th places and blow from Pakistan (75), China (86), Nepal (101), Bangladesh (115), Sri Lanka (116).
Meghan Markle would be 'petrified' in terrifying terror training
As Prince Harry's elder brother and the future King, it wouldn't be too unusual for Meghan to be lead to Harry by William. Including Markle was a public acknowledgment by the Queen that she will soon be joining the fold, The Telegraph reported.
The United States came in at 18th, down from 14th place a year ago.
He said the most remarkable finding was the consistency between locally born's happiness and that of immigrants.
Israel has retained its spot as the 11th-happiest country in the world for the fifth year running, according to this year's United Nations annual World Happiness Report. The report ranked Finland as the happiest country, closely followed by Norway and Denmark.
Describing the reason for country's happiness, 24-year-old resident of Helsinki said that the basics are quite good in Finland and hence people are happy.
Nigeria is number 91 on the recently concluded World Happiness Report. It has never been in the top 10. Singapore is ranked as the 34 happiest country, just below Saudi Arabia, and the next SE Asian country is Thailand on the 46 spot.
According to Jeffrey Sachs, a leading United States development economist who contributed to the report, "the USA happiness ranking is falling, in part because of the ongoing epidemics of obesity, substance abuse, and untreated depression". It surveyed 156 countries for their happiness levels, and 117 countries to determine the happiness of immigrants.
The report states that countries "with a more balanced set of social and institutional support for better lives" ranked higher on the immigrant happiness list, showing that the richest countries don't necessarily have the happiest migrants.