The exact Kohn-Sham iteration of generalized density-functional theory in finite dimensions with a Moreau-Yosida regularized universal Lieb functional and an adaptive damping step is shown to converge to the correct ground-state density.The Kohn-Sham (KS) scheme [1] of ground-state density-functional theory (DFT) is the cornerstone of electronic structure calculations in quantum chemistry and solid-state physics [2]. It maps a complicated system of interacting electrons onto an auxiliary, non-interacting KS system. This yields a set of coupled one-particle equations that need to be solved self-consistently. Since a direct solution is unfeasible, practical approaches are variations of self-consistent field methods taking the form of fixed-point iterations or energy minimization algorithms [3][4][5][6][7][8]. To date, no method has been rigorously shown to converge to the correct ground-state density. Convergence results for approximate schemes are available for auxiliary assumptions [9], and reliably achieving convergence in systems with small band gaps or for transition metals remains a hard practical challenge [10]. Approximation techniques face the problem of an exponential growth of local minima with increasing number of particles [11]. Such local minima appear as 'false' solutions in the energy landscape and distract from the global, absolute minimum [12]. Hence, a method with mathematically guaranteed convergence to the correct minimizer is of central importance and has been listed as one of twelve outstanding problems in DFT [13].