Alan Hosker won the Padiham and Burnley West seat with 1,234 votes, beating the incumbent, Labour's Marcus Johnstone, with a majority of 228.
The ward was previously represented by the BNP between 2009 and 2013.
The Conservatives gained control of Lancashire County Council, which was previously under no overall control with Labour as the biggest party.
In council elections across the country UKIP lost more than 100 seats.
UKIP has won its first seat in England's local elections, gaining from Labour in Lancashire.