In doing so at 11am, it also dimissed the application by Pakatan Rakyat's Mohd Nizar Jamaluddin.
In immediate comments, Nizar said he has not decided whether or not to file a review.
"We will scrutinise the written judgment and then decide," he said, calling for calm among supporters.
"This is the saddest day (for) Malaysia as this shows the judiciary is not indepedent. Our target now is to win back Perak."
Perak BN senior exco Hamidah Osman said: "I am grateful for the decision and hope everyone will accept it. This is a victory for the people of Perak."However, DAP leader Lim Kit Siang disagreed, saying the "5-0 decision is a shameful moment for the judiciary".
On his Twitter page, he described this as a "black day for justice".
PKR Gopeng MP Dr Lee Boon Chye said: "Although we lost 1Perak, we might win 1Malaysia in the next general election."
Perak DAP head and Sitiawan assemblyperson Ngeh Koo Ham said the current Perak government is not the people's government as 54 percent of the voters had chosen Pakatan in the 2008 general election.
Outside the court, the Pakatan Rakyat crowd shouted "Bubar DUN", "Zambry penakut", "tipu" and "rasuah" when they heard the news.
BN supporters, however, celebrated as their leaders came out of court.
The decision
President of the Court of Appeal, Justice Alauddin Mohd Sheriff, led a five-member bench in delivering the verdict.
The others were Chief Judge of Malaya Justice Arifin Zakaria and Justices Zulkefli Ahmad Makinuddin, Mohd Ghazali Mohd Yusoff and Abdull Hamid Embong of the Federal Court.
Justice Arifin who read the judgment ruled that it is not necessary for a vote of confidence to be done in the state assembly, and that the sultan can sack the MB. Zambry therefore commands support in the House with 31 seats.
The attorney-general's chambers was represented by the head of prosecution division Tun Abdul Majid Tun Hamzah and Kamaluddin Md Said, the head of the Trial and Appeals division.
Nizar's lawyers were Philip Koh, Chan Kok Keong, Leong, Edmund Bon, Miohd Hanipa Maidin, Ranjit Singh, and Razlan Hadri Zulkifli.
Zambry's lawyers are Cecil Abraham and Sunil Abraham. Zambry himself was not present in court for the decision.
Mohd Hafarizam Harun and M Reza Hassan held a watching brief for Umno.
Judicial decisions
BN was seen to have usurped power in Perak when three Pakatan Rakyat assemblypersons switched sides to become BN-friendly Independents in February last year, leading to Pakatan seeking legal recourse.
On May 11, Kuala Lumpur High Court judge Abdul Aziz Abdul Rahim had ruled that Nizar is the rightful menteri besar.
"He is, and was, at all material times the chief minister of Perak," Abdul Aziz told the court.
However, the appellate court's three-member bench unanimously overturned the decision in favour of Zambry, saying that the High Court judge had failed to properly and adequately appreciate the entire evidence before him.
"We hold the view that the granting or the withholding of the request for the dissolution of the state legislative assembly is royal prerogative,” ruled Justice Md Raus Sharif.
The Federal Court had, on Nov 5 last year, heard Nizar's appeal and submission for more then six hours but defer its decision
The court had earlier dismissed Nizar's application for a full bench of 11 judges or an enlarged panel.
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