Palestinian resistance group Hamas has released the 20 living hostages in the Gaza Strip, while 1,900 Palestinians held in Israeli prisons were also released as part of the cease-fire agreement on Monday.
The Israeli military said it had received all 20 hostages confirmed to be alive, after their transfer from Gaza by the Red Cross.
They were transferred to a military base in southern Israel to be reunited with their families.
In Gaza, thousands of relatives, many weeping with joy, gathered at a hospital where buses brought home some of the nearly 2,000 Palestinian prisoners and detainees to be freed by Israel as part of the accord.
The exchange comes as part of the cease-fire reached in Israel's two-year genocidal war on Gaza as President Donald Trump visits the region.
Their release completes the handover of all 20 remaining Israeli hostages covered by the current cease-fire deal, following the earlier release of seven others earlier in the day.
The cease-fire and partial Israeli withdrawal agreed last week halted one of Israel's biggest offensives of the war, a genocidal assault on Gaza City that was killing scores of people per day.
Since then, huge numbers of Palestinians have been able to return to the ruins of homes in the Gaza Strip, swathes of which were reduced to a wasteland by Israeli bombardment that killed 68,000 Palestinians, mostly women and children.
Among the immediate issues still to be resolved: recovering the remains of another 26 Israeli hostages believed to have died and two whose fates are unknown.
Aid supplies must be rushed into the enclave, where hundreds of thousands of people face famine due to Israel's unlawful blockade. U.N. aid chief Tom Fletcher underlined the need to "get shelter and fuel to people who desperately need it and to massively scale up the food and medicine and other supplies going in."