The latest UN Refugee Agency's global trends report shows a spike in the number of displaced people around the world with 65.6 million people forcibly displaced this year - some 300 000 more than 2015.
War, violence and persecution worldwide have been cited as reasons, among others, leading to the increase.
The 65.6 million comprises 22.5 million refugees (the highest ever seen), people displaced in their own countries and asylum seekers.
At the end of 2016 the number of people seeking asylum globally stood at 2.8 million.
Syria's conflict remained the world's biggest reason for refugees with 5.5 million people.
The biggest new factor was South Sudan, where the “disastrous breakdown” of peace efforts in July 2016 contributed to the outflow of 739 900 people by year's end. Currently this stands at 1.87 million.
Displacement of people inside their own countries also remained a big problem as figures stood at 40.3 million by the end of 2016.
Syria, Iraq, and Colombia were the biggest internal displacement situations.
UN High Commissioner for Refugees Filippo Grandi said: “By any measure this is an unacceptable number, and it speaks louder than ever to the need for solidarity and common purpose in preventing and resolving crises, and ensuring together that the world's refugees, internally displaced and asylum seekers are properly protected and cared for while solutions are pursued.
“We have to do better for these people. For a world in conflict, what is needed is determination and courage, not fear.”
At the same time, returns of refugees and internally displaced people to their homes, combined with other solutions such as resettlement in third countries meant that for some, the year 2016 brought the prospect of improvement.
Some 37 countries together accepted 189 300 refugees for resettlement. Around half a million other refugees were able to return to their home countries, and about 6.5 million internally displaced people to their areas of origin - although many did so in less than ideal circumstances and facing uncertain prospects.
Children, who make up half the world's refugees, continue to bear a disproportionate burden of the suffering, mainly because of their greater vulnerability. About 75 000 asylum claims were received from children travelling alone or separated from their parents. The report says the figure is likely to underestimate the true figure.
Among the report's key findings is that new displacement, in particular, remains very high.
Of the 65.6 million people forcibly displaced globally, 10.3 million became displaced in 2016, about two-thirds of them (6.9 million) fleeing within their own countries.
Worldwide, 84% of refugees were in low or middle income countries by the end of 2016, with one in every three being hosted by the least developed countries.