The 16-year-old singer - who has become known for her classic honky-tonk sound and yodeling talents - was crowned the winner of season 15 of The Voice on Tuesday.
Shepherd's win marks the second victory in a row for two-time coach Kelly Clarkson, who won last season with her contestant Brynn Cartelli.
Shepherd beat out Team Blake Shelton's Kirk Jay and Chris Kroeze, and Team Jennifer Hudson's Kennedy Holmes.
While it was Clarkson's second win, she seemed shocked as Shepherd was announced the winner over runner-up Kroeze.
The seasoned musician ran up onto the stage and gave Shepherd a big hug. The 16-year-old vocal powerhouse, while supremely talented, was not the odds-on favorite to take the top spot.
The teen's family, including her grandfather, were overjoyed and also ran up on stage to celebrate.
Holmes took fourth place and Jay was placed third.
Despite the fact that she stands at only 4'10", the New Mexico native has made a name for herself on the show for her big voice. Week after week, she has effortlessly taken on country legends like Loretta Lynn and LeAnn Rimes.
Shepherd has also become known for her unique talent of yodeling. She previously told reporters that she learned how to yodel when she was 11 years old after her mom showed her a video. Soon after that, she fell in love with it and kept on practicing.
"I've been listening to country since I was tiny. You can tell the story of the song to people," the teen said shortly after her big win.
Still coming to terms with her Voice crown, Shepard struggled to put into words just how she is feeling.
"I'm still hyperventilating a little, I feel very blessed," she told reporters.
The star-studded evening featured performances by Kelly Rowland, Rascal Flatts, and the Doobie Brothers. Shepherd was paired up with Dan + Shay to perform a rendition of their current hit "Speechless," and it couldn't have made for a more fun match.
"I rehearsed with them, and they are so nice," Shepherd told PEOPLE on Monday night. "I almost forgot to stop breathing because they're so cool. They're so easy to be around as well. They're kind of just like Kelly, they're their true selves.