Seven UK universities score in the top 10 in the annual ranking from Times Higher Education, and make up more than a quarter of the 200-strong long list.
The capital's renowned universities Imperial College, University College London, London School of Economics and Kings College London also made the top 10, with Edinburgh the only university outside of the city to join them at the pinnacle of the list.
Switzerland, Sweden and Germany landed spots a the top, with ETH Zurich, Swiss Federal Institute of Technology, Karolinska Institute and LMU Munich were fourth, ninth and tenth, respectively.
Top 10 universities in Europe
1. University of Oxford
2. University of Cambridge
3. Imperial College London
4. ETH Zurich
5. University College London
6. London School of Economics
7. University of Edinburgh
8. King's College London
9. Karolinska Institute
10. LMU Munich
Outside the top 10, the UK's University of Manchester, University of Bristol, Durham University, University of Glasgow, University of Warwick, University of St Andrews, University of Exeter, St Andrews, University of Sheffield, Queen Mary University and Southampton rounded out the top 50.
The list is based on factors such as the teaching and research environment, research influence, industry income and international outlook.
After the UK, Germany is home to the greatest number of top universities - 36 - followed by Italy with 19. The research found that Scandinavian countries outperformed in relation to their relatively small population sizes, as did Ireland.