After seven weeks of fighting which left more than 2,200 people (mostly Palestinians) dead, a truce was finally brokered by Egypt starting at 19:00 local time (16:00 GMT).
The US gave full backing to the deal and UN Secretary Ban Ki-Moon also welcomed the truce but also warned that "any peace effort that does not tackle the root cause of the crisis will do little more than set the stage for the next cycle of violence".
According to the BBC, indirect talks on more contentious issues, including Israel's call for militant groups in Gaza to disarm, will begin in Cairo within a month.
Of course, the truce has brought immediate relief, tension and fear have dissipated on both sides of the border. However, the struggle is not over.
Both sides have been hailing the truce as a victory but the truth is that neither side achieved the desired outcome.
Hamas did not achieve the concessions it expected; there is no deal on the opening of a sea terminal or an airport and the degree to which borders will be opened is still being debated.
Equally Israeli PM Netanyahu can expect fierce criticism from far right politicians for agreeing to an inconclusive outcome rather than inflicting a decisive defeat on Hamas.