Tory mayor is facing tough ne egotiations.
The Tories lost seven seats, the Lib Dems lost one and Labour picked up eight.
Labour won seats in Tynemouth, Collingwood, Weetslade, Benton, Battle Hill, Whitley Bay, Preston and Monkseaton South.
The council as a whole now has 29 Labour councillors, 24 Conservatives, and 7 Lib Dems.
It means Tory mayor Linda Arkley may have to look to other parties to support her in order to vote measures through.
Senior North Tyneside Conservative councillor Michael McIntyre said: "We need 21 to get a budget through and we have 24 seats, 25 with Linda, so day-to -day we think we will get by. Obviously there will be some issues where it is more difficult but we will deal with those as they come through.
"When we look at what happened today and go over the statistics it is fair to say we lost out because it was a General Election. If this had been just a local election we could have held those seats.
"When we took them Labour was at 25 per cent in the polls, so any increase in Labour's fortunes was bound to help them, they couldn't get any lower in those seats, and that is what hurt us.
"We have to go away and have a look at this and were we stand. Unfortunately I don't think we will make up all these loss next year but we have four years to do this again and we intend to increase our seats by then."
Labour Group Leader Jim Allan said: "We're delighted that the people across the Borough have put their trust in the Labour party. They can be sure we will hold the elected mayor to account but we will be positive in our approach.
"I believe people have voted for a 'new politics' in the Borough. We stand ready to make North Tyneside a standard bearer in that new politics. "Our priorities are to restore people's faith in our politics by openness and transparency."