Labour party policy, agreed at conference, was to support a further referendum if a general election could not be achieved. "And, as I've said, we will return to the house on Monday to table amendable motion and to make a statement about the way forward", May said addressing to the House of Commons.
The SNP's Ian Blackford said the actions of May's government had "reinforced the case for Scotland to be an independent country" and that London "completely ignores the wishes" of the Scottish people who voted to remain within the EU. Every single previous prime minister in this situation would have resigned and called an election.
The prime minister was fully prepared for the loss, springing to her feet immediately afterwards with a promise to "listen" to concerns.
A general election would "deepen divisions when we need unity, it would bring chaos when we need certainty", Mrs May said. "It is not in the national interest".
EU Brexit negotiator Michel Barnier said the bloc is stepping up preparations for a chaotic "no-deal" departure by Britain after Parliament's actions left the bloc "fearing more than ever that there is a risk" of a cliff-edge departure.
When will the vote of no confidence take place? She told Sky News: "It should be cross-party, remainers, leavers and other parties negotiating this deal". "But people are skeptical that she's going to get anything that's going to win over members even of her own party".
The Commons defeat - the largest in history, by 432 votes to 202 - came as a huge blow for Mrs May. She has refused to open dialogue with the front bench.
Punjab-origin Tanmanjeet Singh Dhesi MP called on May to resign, telling the House: "Homelessness has spiralled out of control and the usage of food banks has risen exponentially".
Meanwhile, the former leader and co-founder of UKIP, Nigel Farage, said Wednesday it was freaky May had not resigned as prime minister following her defeat. It is widely expected that Article 50 will get extended and a no-deal Brexit will not happen.
The UK pound was highly volatile after British members of parliament rejected prime minister Theresa May's Brexit deal by a wide margin. They included all seven PIO Labour MPs, as well as three Tory PIO rebels. If the government wins the vote, May will remain, not leave.
May pledged to work with senior politicians across Parliament to find a compromise that would avoid a disorderly no-deal Brexit or another referendum on membership.
One group of ministers including David Gauke and Amber Rudd are pushing to stay in an EU customs union, while Brexiteers including Andrea Leadsom pushing to ramp up no deal planning.
Companies warned of catastrophic job losses and chaos at ports if there was a no-deal Brexit that would see trade with the European Union switch to World Trade Organization rules, which many argue could disrupt supply chains relying on friction-free trade.
He said Mrs May meant to retain her "red lines" - ruling out Labour's demand for a customs union with the EU - with sources suggesting compromising on this would risk cabinet resignations.
Opening the debate on the no-confidence motion, Corbyn urged May's "zombie government" to stand aside and declared her "Frankenstein" Brexit deal officially dead. "The deal was the worst of all worlds".
The EU's chief Brexit negotiator Michel Barnier said the United Kingdom had to decide on its approach. "Extending Article 50 and/or a softer version of Brexit, or no Brexit at all are the most viable options now, in the eyes of the market".
She vowed to offer a "constructive spirit" but said given the time pressure as the clock counts down to Brexit day, "we must focus on ideas that are genuinely negotiable and have sufficient support".