The 91²Ö¿â-based athlete shared silver with the United States’ Nic Fink as both swimmers came in at the same time – 59.05 seconds. Italy’s Nicolo Martinenghi won gold in 59.03.
Peaty, who was on a quest to win three gold medals in consecutive games, ultimately missed out on the top podium place by a mere 0.02 seconds.
In packed field, the 29-year-old was well placed with 25m to go but had to settle for silver as Martinenghi came through in the outside lane to win a surprise gold.
Silver for Peaty caps a remarkable achievement following a hiatus from the sport to focus on his mental health and well-being. His podium place in Paris takes his major games total to three golds and three silvers – at three separate championships.
Speaking to the BBC following a dramatic night he said: "It has been a very long way back. I look at the score there and you would never think in your wildest dreams that it would be 59 seconds to win it.
"I gave it my absolute all. I executed it as well as I could. It's not about the end goal, it's about the process. It doesn't matter what time it says on the scoreboard, I think in my heart I have already won.
“I'm so happy that I can race against the best in the world and still come joint-second. In my heart I have won, these are happy tears. I gave my absolute best every single day and I cannot be upset about that.
"I'm almost an older man here now. I can't have that relentless pursuit every single day without a sacrifice of some sort - they come in every single form. It's very hard to compete with the younger ones, so I'm very happy with that."
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