How to reply when someone said 'Do you mind if I sit here'?
If I replied 'yes', I may imply 'I do mind' or 'Yes, you can sit here'.
If I replied 'no', I may mean 'I don't mind' or 'No you can't sit here'.
So the response could have opposite meaning. I think replying 'No' should be grammatically correct. But I'd like to know how do native speakers response.

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There are multiple ways of answering this question.
You can say something like: " I don't mind at all"; " Go ahead, the seat is available'; "No, I don't mind, please have a seat'.

I hope this answers your question :)
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The correct answer is "No" but people will often say yes and then correct themselves. In that example it would be common to hear either "No" or "Yes. Oh oh I mean yes, you can sit here, no, I don't mind. Haha"

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To avoid ambiguity, we would say: "Be my guest", "Help yourself", or "Go ahead.", You could also just gesture with your hand as if showing someone to the seat (implies "Help yourself" also).

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Thank you all for your answers. I knew 'no' should be the correct answer but when someone asked me, I just didn't have enough time to think about grammar and always replied 'yes'. Thankfully nobody misunderstood me. Next time I will try use 'go ahead' which can reply both 'do you mind ...' and  'can I ...'

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This made me giggle because English is so ridiculous. I'm so sorry!

Most people in the United States would say:

-No (you don't have to say, "I don't mind"-- it's implied)
-No I don't mind if you sit here
-Feel free to take a seat
-Nope (you don't have to say, "I don't mind")

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