Israel says Hamas has handed over all 20 surviving hostages as part of the Gaza ceasefire deal.
The remaining Israelis were exchanged for over 1,900 Palestinian prisoners after being held in the tunnels of Gaza for more than two years.
Hamas initially handed over seven hostages to the Red Cross, before releasing the other 13 for emotional reunions with their families.
They were then flown to a special "homecoming" hospital where they will be allowed to recover in private.
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Tens of thousands of Israelis watched the moment they were finally freed at public screenings across the country.
Families and friends cheered as TV channels announced the hostages were safely in the hands of the Red Cross.
The 20 released are all men aged between 20 and 48, some taken from their homes and others from the Nova music festival during the October 2023 terror attack.
Israel previously said of the 251 kidnapped, 20 were thought to still be alive in Gaza - as well as the remains of 28 who died.
Four of the dead are set to be handed over on Monday but a timetable for the rest is unclear.
Other hostages had been released as part of previous deals.
As part of the first phase of Donald Trump's ceasefire agreement, Hamas was given 72 hours to release all the Israeli hostages, alive and dead.
The ceasefire started at midday (10am UK time) on Friday, with tens of thousands of displaced Palestinians moving back towards northern Gaza, which has been mostly destroyed by Israel.
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Who are the hostages to be freed?
Hamas released a list of the 20 living hostages it has freed. Tap on their pictures to read more about them:
Israel confirmed it has released more than 1,900 Palestinians; the number was expected to include 250 serving life sentences as well as 1,700 Gazans detained since the start of the war.
Crowds gathered in the West Bank and Gaza, cheering as buses of prisoners arrived home.
More than 150 of the prisoners were sent to Egypt and arrived at the Rafah crossing early Monday afternoon, according to an Egyptian official.
A second phase of the plan, which all sides have yet to agree on, could see Israeli troops further withdrawing from Gaza.
Questions over the future governance of the Strip and the disarmament of Hamas are expected to prove difficult to resolve.
Trump hails 'historic dawn of new Middle East'
Mr Trump arrived in Israel on Monday on Air Force One, receiving a hero's welcome for getting the deal done.
He got a rapturous welcome and multiple standing ovations as he addressed Israel's parliament, though at one point two hecklers from left-wing parties were ejected after they loudly interrupted his speech.
Prime Minister Benjamin Netanyahu said he was the country's greatest friend and would be awarded Israel's highest honour.
"This is a historic dawn of a new Middle East," Mr Trump told the Knesset.
"Generations from now this will be remembered as the moment that everything began to change, and change very much for the better."
He told Palestinians they should focus on "building their people up" instead of attacking Israel.
Mr Trump also used his speech to urge Israel's president to pardon Mr Netanyahu, a controversial figure for some Israelis who is currently on trial for alleged corruption.
The president is now heading to Sharm el-Sheikh in Egypt for a summit to discuss his deal and its post-war plans with other world leaders, including Sir Keir Starmer and Emmanuel Macron.
The war began when Hamas-led militants stormed into Israel on October 7 2023, killing around 1,200 people and taking 251 hostage.
Israel invaded Gaza in retaliation, with airstrikes and ground assaults devastating much of the enclave, killing more than 67,000, according to its Hamas-run health ministry, which does not differentiate between civilians and combatants but says around half of those killed were women and children.
(c) Sky News 2025: Hamas hands over Israeli hostages as Palestinian prisoners also released under Gaza ceasefire deal