Two Red Cross buses carrying Palestinian prisoners freed as part of Monday's exchange began leaving Ofer prison, as the Israeli military said all live hostages held by Hamas had returned to Israel.
The army made the announcement after the final group of 13 hostages held by Hamas crossed the border.
His return was a key part of the ceasefire in the war between Israel and Hamas, now punctuated by a visit to Israel and Egypt by US President Donald Trump. The Egyptian presidency said Israeli Prime Minister Benjamin Netanyahu would also attend the summit in Egypt.
Israel is expected to release more than 1,900 Palestinian prisoners as part of the deal, which paused a two-year war that devastated the territory, killed tens of thousands of Palestinians and left many captives in the hands of militants.
Seven of the hostages were released early Monday, while the remaining 13 were released a few hours later.
The 20, all men, were reunited with their families and were expected to undergo medical checkups.
Palestinians await the release of detainees from Ofer prison. )AP)
The bodies of the remaining 28 dead hostages are also expected to be released as part of the deal, although the exact timing remains uncertain.
Families and friends of the hostages gathered in a square in Tel Aviv erupted in applause when Israeli television channels announced that the first group of hostages was in the hands of the Red Cross. Tens of thousands of Israelis watched the transfers in public screenings across the country.
Israel released the first photos of the hostages arriving home, including one showing 28-year-old twins Gali and Ziv Berman embracing upon reuniting. Earlier freed hostages had said the Kfar Aza twins were held separately.
Photos of the first seven hostages released on Monday showed them pale but less gaunt than some of the hostages freed in January.
Israeli security forces outside Ofer prison. (AP)
Israel is expected to release more than 1,900 Palestinian prisoners as part of the deal, which paused a two-year war that devastated the territory, killed tens of thousands of Palestinians and left many captives in the hands of militants.
From Egypt, a senior Egyptian official confirmed that 154 Palestinian prisoners have already been released and deported by Israel: they are already in Egypt.
Meanwhile, Palestinians awaited the release of a larger number of prisoners held by Israel. In the West Bank, an armored vehicle flying an Israeli flag fired tear gas and rubber bullets at a crowd waiting near Ofer prison. As drones buzzed overhead, the group dispersed.
The ceasefire is also expected to be accompanied by increased humanitarian aid to Gaza, where some areas are mired in famine.