Canda was passed over despite a strong push from Prime Minister Justin Trudeau, according to The Associated Press.
The elections were reportedly held under unorthodox circumstances due to the coronavirus pandemic.
A two-thirds majority of 128 votes were required to win a seat. Norway received 130, Ireland got 128 votes and Canada was only able to pull in 108.
This marked Canada's second consecutive defeat in a bid to win a seat, as the country will once again go home empty-handed.
Having a seat on the U.N. Security Council typically gives a nation a more powerful say in global affairs and allows it to be more involved when the organization is dealing with international threats.
The five permanent members of the Security Council are the United States, China, Russia, France and Britain. Having permanent status means a nation can exercise veto power over any substantial resolution.
Canadian Foreign Minister Francois-Philippe Champagne declined to speak with The AP, but said he's proud of the country's efforts over the past several years "to renew and strengthen many of our bilateral relations."
The Associated Press contributed to this report.