Based on surveys completed by alumni, the programme is ranked 59th in the world, up from 65th place last year.
The ranking looks at qualities such as alumni career progression, the diversity of the school and the quality of faculty.
Edinburgh is ranked 1st equal the UK for percentage of female students (60 per cent), 5th in the UK for percentage of female faculty and 7th in the UK for international faculty.
Michelle O’Toole, Director of the MSc in Management at the University of Edinburgh Business School, said:
"The Master's in Management sees us work with organisations around the world, providing our students with access to real-world management practices. We emphasise global employability with tailored professional development including career coaching.
"It is also noted that while the average number of students taking a Master's in Management at a ranked UK business school is 117, here at Edinburgh we hosted 67 students last year, underlining our commitment to a personalised experience in this extraordinary city.
"Surveys are just one of the many tools we use to judge the success of our courses. We thank all our alumni who took part."