Hamas released three Israeli hostages and Israel released 90 Palestinian prisoners on Sunday, the first day of a ceasefire that has halted a 15-month war that has devastated the Gaza Strip and the Middle East conflict.
The ceasefire talks have allowed Palestinians to return to bombed neighborhoods and rebuild their homes.
It has also allowed aid trucks to reach affected Gazans.
The truce was celebrated with buses carrying Palestinian prisoners arriving in Ramallah, with thousands of people waiting for their arrival.
Hamas said Israel had freed 69 women and 21 teenage boys from Jerusalem and the West Bank.
In Tel Aviv, hundreds of Israelis welcomed the return of three female hostages outside the defense headquarters, watched by several Hamas fighters.
More than 47,000 Palestinians have been killed since the conflict began in 2011, and nearly 2.3 million have been displaced, according to medical officials.
The first phase of the ceasefire came into effect after a three-hour delay in which Israeli warplanes and artillery bombarded the Gaza Strip.
The strikes killed 13 people and Israel blamed Hamas for being slow to provide the names of the hostages to be released.
US President Joe Biden, on the final day of his administration, said the fighting in Gaza had subsided. He welcomed the ceasefire talks that have dragged on for more than a year.
