It was the three-time champion's sixth victory at the Circuit Gilles Villeneuve-where he claimed his maiden triumph in 2007-as well as his third this season and the 56th of his career.
The Briton is arguably the best driver of his generation and he proved it in style by grabbing the Grand Prix title beating the second placed Valtteri Bottas with a staggering lead of 20 seconds.
'I knew we could recover position because the auto is quick, but you have to fight your way through the field which is a lot of work, and it's not easy. I was very busy for most of the race which I enjoyed, which was fun, it was good racing.
"I'm impressed at the way they fixed the problem and now we are back in reckoning".
"The grandstand was too far away, so I said I would not get there if I throw the gloves", he said.
Hamilton, who in claiming the 56th career victory also reduced the gap to title rival Vettel in the championship to 12 points, says he was relieved Mercedes was able to overcome its hard Monaco weekend and praised his team for recovering so quickly.
Vettel's day hit a snag at the very first turn when he was clipped as the Red Bull of Max Verstappen flew down the outside and he was forced to pit after part of his front wing flew off. Daniel Ricciardo ended up a fine third place for Red Bull, in what was the Australian's third such podium result in as many races. "I knew what I had to do today".
The pink Force India cars of Sergio Perez and Esteban Ocon were fifth and sixth after battling each other on the track - and over the radio - for position down the stretch.
As the world champions returned to the top of the constructors' championship, eight points ahead of their Italian rivals, they served notice that they are still the team to beat. "It's insane to think after 10 years that I enjoy racing every lap just as I did 10 years ago".
"I think Mercedes was very strong, but then they had a completely different race", Vettel said.
Lewis Hamilton was at the pole at Montreal on Sunday and planning to give him a tough fight was Sebastian Vettel in second place followed by Bottas in third.
"I don't think in the five years at this team, they have pulled together so well, really work towards the same cause, and to understand the vehicle".
Hamilton said: "It's been such an incredible weekend". "I am really happy with my performance in the qualifying lap, I couldn't stop smiling during the dinner because I couldn't believe that I reached 65 poles". Both drivers had to retire from the race, while Grosjean had a get a new front wing, pushing him at the back. Finn Kimi Raikkonen finished seventh in the second Ferrari ahead of German Nico Huelkenberg of Renault, with local hero and teenage rookie Lance Stroll of Canada taking ninth for William's and Frenchman Romain Grosjean 10th for Haas.