The Princeton Review survey also placed Abertay ninth in the world for its postgraduate gaming courses.
The university was the first in the world in 1997 to offer degree level qualifications in computer games development.
The Princeton Review surveyed 150 institutions offering game design.
The University of Malta was the only other European institution to make either list, coming in at 23rd for postgraduate courses.
Prof Gregor White, head of Abertay's school of arts, media and computer games, said:  "To be featured so highly in this prestigious ranking for a third consecutive year is testament to the hard work, dedication and excellence of my colleagues in the school and across the university.
"To make advances in both lists is an incredible achievement and is particularly pleasing in this anniversary year."
The survey included questions about academic offerings and faculty credentials to their graduates' starting salaries and employment experience.
Princeton Review editor in chief Robert Franek said: "Game design is an exciting field and programmes are springing up in colleges all over the world.
"As we continue to help students find the best programme for their needs and interests, we strongly recommend Abertay and each of the other schools that made our 2017 ranking lists."
Abertay University's computer gaming courses have been ranked the best in Europe for the third consecutive year in an annual college admissions survey.