Stephen, 18, died after he was attacked by a gang of youths and stabbed at a bus stop in Eltham, southeast London, in April 1993.
Gary Dobson and David Norris were convicted of the notorious murder at the Old Bailey after a trial lasting seven weeks.
The prosecution case had hinged on new forensic evidence discovered by scientists 15 years after Stephen's death as part of a cold-case review.
New scientific techniques revealed a tiny bloodstain on Dobson's jacket that could only have been from the victim. A single hair belonging to the teenager was also found on Norris' jeans.
Stephen's parents Doreen and Neville were in court to hear the convictions and both broke down in tears as they watched from the public gallery.
Outside court, they spoke of their relief but were also critical of the original police investigation which led to the Metropolitan Police being called institutionally racist.
Mrs Lawrence said: "How can I celebrate when I know that this day could have come 18 years ago if the police who were meant to find my son's killers [had not] failed so miserably to do so?"
And her ex-husband declared that he would still not be able to rest until all the men responsible for his son's murder had been brought to justice.
He said: "Something has happened over the last seven weeks. I have watched justice being done. However, I am also conscious that there were five or six attackers that night. I do not think I will be able to rest until they are all brought to justice."
There were gasps from the packed public gallery when the foreman of the jury read out the guilty verdicts.
In the dock, Dobson looked away and shook his head in disbelief. Moments later, he shouted: "You've condemned an innocent man here today. I hope you can live with yourselves."
Stephen's parents wiped away tears as the convictions started to sink in. Many of their friends who were also in court held their heads in their hands.
Dobson's mother Pauline, who was in the public gallery and had earlier given evidence saying her son was at home at the time of the murder, also broke down in tears.
As she was led away from the court, she cried out: "He's innocent. He didn't kill that man."
Dobson, 36, and Norris, 35, both from south London, had denied murder.
Prosecutors said blood, hair and fibres linked to Stephen and found on clothing seized from their homes proved they were involved in the attack.
But the defence had argued the material ended up there due to contamination during their handling and storage by police.
During the trial, which began on November 14, the court was shown police surveillance footage from 1994 of Dobson and Norris using racial slurs.
In the film Norris also launched into a violent tirade about how he would kill and torture black people.
Dobson had already been acquitted of Stephen's murder in 1996 after a private prosecution against him, Neil Acourt and Luke Night failed.
In April 2011, the Court of Appeal ruled that his acquittal could be quashed and he could face trial for Mr Lawrence's death.
He was already in prison at that stage, having been jailed for five years in July 2010 for supplying a class B drug and possessing a class B drug with intent to supply.
Norris had previously been linked to two other stabbings, one where he was acquitted and the other where the charges were dropped.
Speaking outside court, Mrs Lawrence said: "All I now feel is relief, relief that two of my son's killers have finally been caught and brought to justice, relief that these two racist men can no longer think they can murder a black man and get away with it, relief that despite the defence being able to raise issues of contamination the jury saw through it.
"I feel relieved that to some extent I can move forward with my life but mixed with relief is anger - anger that me and my family were put through 18 years of grief and uncertainty not knowing if or when we would get justice."
She urged people to remember her son as a "bright, beautiful young man" rather than a black teenager who was murdered and added "hopefully now he can rest in peace".
In a statement, Mr Lawrence added that his life had been "torn apart" by his son's "senseless murder" and spoke of his "joy and relief" at the convictions.
Duwayne Brooks, Mr Lawrence's best friend who was with him on the night he died, posted on Twitter: "Some JUSTICE at last."
Prime Minister David Cameron hailed the Lawrence family's tireless fight for justice as he reacted to the convictions.
"Today's verdict cannot ease the pain of losing a son," he said, "But for Doreen and Neville Lawrence, I hope that it brings at least some comfort after their years of struggle."
Acting Deputy Commissioner Cressida Dick also paid tribute to the family for contributing "to major changes within policing, the law and society as a whole".
Michael Mansfield QC, who represented Mr and Mrs Lawrence at Stephen's inquest, commended the "huge dignity and persistence" they had shown in seeking justice.
He said: "This is just another milestone for the family in a very long journey. It is a real tribute to the family that they have fought so long to bring about change."
The Stephen Lawrence Charitable Trust described a "sense of huge relief" and said the case had changed the "criminal justice landscape".
Labour leader Ed Miliband said: "The murder of Stephen Lawrence was not only a tragedy for a talented young man and his family, it was a wake-up call to all of us who believe Britain is - and always must be - a country where everyone is shown respect irrespective of race, culture or faith."
Clive Efford, Labour MP for Eltham, said he hoped the police investigation would continue if officers believe there were others involved.
Dobson and Norris will be sentenced on Wednesday but will be treated as juveniles because of their ages - 17 and 16 respectively - at the time of the murder.
The recommended starting point will be around 12 years, although the judge could increase this because of the racially motivated aspect of the case and the fact the pair realised one of the group might use a knife.
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