In violation of United Nations sanctions, the missile flew over Japan before reportedly breaking into three pieces off the country's northernmost island of Hokkaido.
There was little time for warnings before the latest North Korean missile passed over Japan's north coast.
The Japanese government's J-Alert system simply advised people in the area to take precautions.
Japanese authorities say the missile was launched at around 6am local time, flying almost 3,000 kilometres and reaching an altitude of around 550 kilometres before breaking up.
In Australia, Prime Minister Malcolm Turnbull says the act is further proof of the secretive state's recklessness, urging the international community to tighten sanctions on North Korea.
Foreign Minister Julie Bishop admits that, while the scale and pace of the tests are increasing, the full impact of new United Nations sanctions on North Korea are yet to be felt.
She says the latest incident is not particularly unexpected.
"We have seen this pattern of behaviour by the North Korean regimes over a number of decades. They ramp up the provocative behaviour, and it gets to a point where they then sit down and negotiate. And I would like to think it's the former at this point."
Ms Bishop has rejected implementing a missile-defence system in Australia, calling it impractical.
The revised sanctions were imposed on North Korea in response to two long-range missile launches in July.
The last time North Korea had fired a projectile over Japanese territory was in 2009.
The latest launch comes as United States and South Korean forces conduct annual military drills on the Korean Peninsula, much to the objections of the North.
Opposition foreign-affairs spokeswoman Penny Wong has told the ABC the North Korean action was deliberately antagonistic.
"It is a highly provocative, unlawful action by North Korea and, again, demonstrating that they are a threat to regional peace, regional stability and, in fact, global peace and stability."
The Japanese military says it did not try to shoot down the missile, which passed over the nation just minutes after the launch.
Japan's Chief Cabinet Secretary Yoshihide Suga says the launch represents what he calls an "unprecedented, serious and grave threat," in defiance of UN resolutions.
In a phone call with US president Donald Trump, Japanese prime minister Shinzo Abe has agreed to increase pressure on the North Korean leadership.
South Korea has promised in a statement to "respond strongly" if the North continues its provocations.
Earlier this month, North Korean leader Kim Jong-un threatened to fire missiles towards the US territory of Guam.
That prompted President Trump to warn of "fire and fury" if US territory were put in danger.
Retired Australian major general Jim Molan has told Sky News open lines of communication between all sides are vital but so is a backup plan.
"We've had 25 years, at least three (US) presidents' worth of diplomacy -- and diplomacy is critical. You've got to keep doing diplomacy, and you've got to keep your nuclear deterrent well to the front of everything that happens in relation to North Korea."
One Australian politician says he is not convinced diplomacy is even an option.
Crossbench senator David Leyonhjelm has told Sky he thinks a military policy is the way forward.
"I think we're dealing with a nutter here who doesn't understand diplomacy. Well, you can adopt a policy that you would call 'guaranteed second-strike.' So it doesn't matter what do you do, North Korea, if you strike anywhere, anywhere -- Japan, Guam, United States, Australia -- you will get flattened."
The United Nations Security Council will meet to discuss the latest launch.
