He was accused of five counts of indecent assault on a girl aged 14.
Fr Boland was based in Galliagh in Derry at the time of the alleged attacks in 1990 and 1992 at the Parochial House.
The jury found him not guilty by a majority verdict on all counts in the last few minutes.
Fr Boland’s supporters were delighted at the outcome of the case and hugged eachother.
The Donegal priest, who is now based in Omagh, did not speak directly to the media after the verdict was passed.
However, a statement was read out on Fr Boland’s behalf.
It said it had devastated his life and that his reputation had been destroyed by the allegations.
He also thanked his family and friends and other priests who supported him during the trial.
He said he had been a priest for 42 years and looked forward to returning to his ministry as soon as possible.