Speaking at the 69th United Nations General Assembly at United Nations Headquarters, Obama called on international community to be united in the fight against the terrorist group.
The US president also vowed that Washington will not be sending troops to occupy the countries in the region as part of its anti-ISIL campaign.
"We will neither tolerate terrorist safe havens nor act as an occupying power."
The US military has been conducting air strikes against the positions of the terrorist group both in Iraq and recently in Syria.
A number of US allies in the region including Saudi Arabia and Qatar have also joined the US-led coalition in its bombing campaign in Syria.
Obama’s remarks, however, comes as many critics of US maintain Washington has been behind the creation of terrorist groups like ISIL in the Middle East region. They also question the reliability of a coalition whose members are said to be main supporters and financiers of the ISIL Takfiri group.
Elsewhere in his speech, Obama criticized Russia over the crisis in Ukraine.
"Russian aggression in Europe recalls the days when large nations trampled small ones in pursuit of territorial ambition," Obama said, adding "Russia's actions in Ukraine challenge this post-war order."
He added that Washington and its allies will impose a cost on Russia over the Ukrainian crisis.
Obama, however, welcomed a recent ceasefire deal between Kiev and pro-Russian forces in the east of the country.
"If Russia takes that path -- a path that for stretches of the post-Cold War period resulted in prosperity for the Russian people -- then we will lift our sanctions and welcome Russia's role in addressing common challenges."
Russia denies the US allegation of meddling in Ukrainian affairs as baseless and accuses the West of an “unrelenting campaign of slander against Russia, ever more relying on open lies."
