The resolution passed overwhelmingly by the chamber urges authorities in Kyiv to ensure a fair and transparent appeal process.
The text, which was supported by all five major political groups, also says Tymoshenko should be allowed to participate fully in the political process both now and in future Ukrainian elections.
Tymoshenko was jailed for seven years earlier this month on abuse-of-office charges stemming from a 2009 natural gas deal she signed with Russia while in office. The European Union roundly condemned the sentence when it was pronounced and a recent visit to Brussels by Ukrainian President Viktor Yanukovych was called off last week.
The resolution states that this visit "would have offered an excellent opportunity to tackle serious concerns which have been addressed to the Ukraine government" and urges the EU Commission and Council to reschedule the meeting before the planned EU-Ukraine summit in December.
The European Parliament indicated that a trade agreement between Brussels and Kyiv, which is expected will be signed during the December summit, might be put on ice if the sentence is not changed.
"A failure to review Yulia Tymoshenko's conviction will jeopardize the conclusion of the association agreement and its ratification, while pushing the country further away from the realization of its European perspective," it says.
"Ukraine is a European state with a European perspective," Member of the European Parliament Elmer Brok added. "We must have an association agreement with Ukraine, but Ukraine must go in the right direction and cannot systematically persecute the opposition and tread on the rule of law. The fate of the Ukrainian citizens is now in the hands of President Yanukovych."
The EU lawmakers also expressed concern about the deterioration of media freedom and pluralism in Ukraine and the continued detention of former Interior Minister Yuriy Lutsenko, who is on trial on similar charges as Tymoshenko.