Israel has withdrawn its troops from the Gaza Strip to "defensive positions" outside the Palestinian territory.
It says the main aim of its offensive - to destroy militants' tunnels - has been achieved.
A 72-hour truce - brokered by Egyptian mediators late on Monday - came into force at 08:00 local time (05:00 GMT) and appears to be holding.
Gaza officials say the four-week conflict has killed 1,800 Palestinians. Some 67 Israelis have also been killed.
The UN estimates that 75% of the Gaza residents who died were civilians, more than 400 of them children.
"The Israel Defense Forces will be redeployed in defensive positions outside the Gaza Strip and we will maintain those defensive positions," Israeli military spokesman Lt-Col Peter Lerner said