Lewis Hamilton finishing in fourth place after a battling drive.
Nico took his third career win this afternoon, the 12th for a Mercedes car and the 98th for a Mercedes engine in F1.
Both drivers started the race on option tyres and then ran prime tyres for the rest of the race. Nico stopped on laps 12, 34 & 42, the latter stop a precaution owing to a damaged tyre, Lewis pitted on laps 8 & 36.
With this afternoon's result, the team had climbed to second place in the Constructors' Championship on 171 points. This total, after eight races, exceeds the team's total points scored in the entire 2012 season (142).
Nico Rosberg: This is a great moment for me and our team to win in the home of motor racing at Silverstone. We have such great momentum in our Silver Arrows team and I'm very proud to be part of it. This win is for every single person who has been involved in building our car. It was a shame for Lewis today, and I had also a problem with my tyre but I was lucky because of the Safety Car.
It was so special to win today, especially in front of fellow team members and their families as our factory is only ten minutes away from the track. The race was really exciting. I had to manage the tyres really carefully, I was told to avoid the kerbs.
At the end, it was difficult to hold Mark and to look after my tyres but I was able to keep the position, and take a great victory for us. Now we can look forward to another home race next weekend at the Nürburgring.
Lewis Hamilton: Of course, I'm disappointed by today's race and I would have loved to deliver the win this afternoon for all the British fans here at Silverstone. The race started so well for us today; I felt comfortable out in front and was managing my pace. The tyre problem was such a shame and from then, it was just a case of giving it my all and battling as far up the field as possible.
I had some good overtaking moves and, given another lap, I might have got Fernando and ended up on the podium. Everything considered, fourth place is pretty good after having been last on lap 10 and we'll take that.
It's a great result for the team today, big congratulations to Nico who came through a tricky situation to take the win for us. We've now moved up to second place in the Constructors' Championship which is a nice reward for everyone at the factories just down the road from here.
Ross Brawn: It is a very special feeling to win here at Silverstone and especially at the end of such a dramatic afternoon. Nico didn't put a foot wrong today: he drove extremely well, looked after the tyres like he needed to and was in the perfect place to pick up the pieces when others ran into trouble.
It got very tense in the final laps after the second Safety Car period, but Nico showed he had the speed to respond and the composure to bring the car home. It's his second victory in three races and really deserved. As for Lewis, he showed exactly what he's made of today. He was driving beautifully at the front of the field and slowing pulling away when he suffered the tyre failure.
Then he went from dead last on lap nine to fourth at the finish - and he was lapping incredibly quickly with a damaged car in the final laps. I am sure he will take a lot of encouragement for the rest of the season from the basic pace we showed today. But the biggest praise of all must go to our team.
We have worked night and day this year to improve this car, solve our tyre management issues and put ourselves in a position to take the fight to our rivals. Today, we took another big step in the right direction and perhaps we have turned a corner now. It's extra special to have done it here at Silverstone, in front of our colleagues, family and friends. Congratulations to the entire team.
Toto Wolff: What a great day for our team. The guys in Brackley and Brixworth have worked so hard in the past weeks and months to deliver this kind of performance, always with the total support and commitment of our board in Stuttgart. Today, we began to deliver on the potential we have shown this year.
Both cars were right on the pace all the way through the race and, while we had misfortune with Lewis, we also enjoyed good fortune with the final Safety Car period, which allowed Nico to change a damaged tyre without penalty. Nico drove beautifully and Lewis was full of fight and determination to come from the back of the grid to the edge of the podium.
Most of all, this is a win for everybody who has worked so hard at our factories to pull us into contention at the front of the field. In a normal race, on a demanding circuit, we were right there in qualifying and all through the race, which is probably the best news from today.
So thank you to Stuttgart, to Brixworth and to Brackley. Now we need to keep pushing because we still have a lot more to achieve this season.
Mercedes AMG Petronas