Joyous families are being reunited, and Palestinians are making the grim march back to what is left of their homes amid rubble and ruin after 15 months of Israeli bombardment.
This is the first stage of a ceasefire in which Hamas must handover 33 hostages - captured during its assault on Israel on October 7, 2023.
In return Israel must release about 1900 Palestinians.
To the north, there's another ceasefire between Lebanon and Israel which - just this week - was extended.
The deal there requires both the armed group Hezbollah and Israeli soldiers to withdraw.
BBC's Middle East Correspondent Sebastian Usher explains the situation.