Israel has released 110 Palestinian prisoners after delaying the process in anger at the swarming crowds at a hostage handover point earlier today.
Hamas freed three Israeli and five Thai nationals in Gaza.
Arbel Yehud, 29, abducted from Kibbutz Nir Oz in the Hamas-led assault on Israel on 7 October 2023, looked fearful and struggled to walk through the crowd as armed militants handed her to the Red Cross in the southern city of Khan Younis.
Another Israeli hostage, 80-year-old Gadi Moses, was also released along with five Thai nationals working on Israeli farms near Gaza when the militants stormed the border.
Israeli Prime Minister Benjamin Netanyahu said the sight of their handover amid the swarming crowds was shocking and threatened death to anyone hurting captives.
After urging mediators to ensure the scene would not be repeated, the prime minister's office said mediators had committed to ensuring the safe passage of hostages in future releases.
Then, buses arrived in the West Bank city of Ramallah carrying some of the 110 Palestinian prisoners freed as part of the phased agreement that halted fighting in Gaza earlier this month.
They include 30 minors and some convicted members of groups responsible for deadly attacks that have killed dozens of people in Israel.
Mr Netanyahu and Defence Minister Israel Katz said they had ordered the delay in the prisoner release "until the safe exit of our hostages in the next phases is assured".
Palestinian health officials said at least 14 people were hurt by Israeli fire, some with live and rubber bullets, others from gas inhalation, as they gathered at the entrance to Ramallah to welcome the freed detainees.
There was no immediate comment from Israel.
Some prisoners from East Jerusalem arrived at their homes while others were taken to Gaza or deported to Egypt.
Watch: Agam Berger paraded on a stage in Jabalia before being handed over to the Red Cross
Earlier, in Jabalia in northern Gaza, an Israeli soldier, Agam Berger, was led through a narrow alley between heavily damaged buildings and over piles of rubble before being handed to the Red Cross.
"Our daughter is strong, faithful, and brave," a statement from her family said. "Now Agam and our family can begin the healing process, but the recovery will not be complete until all the hostages return home."
A video released by the Israeli government showed a pale Ms Berger crying and smiling while sitting on her mother's lap.
The mother of one of the Thai detainees watched a livestream of the scene anxiously from her home in the northeastern Udon Thani province.
"Please, let my son walk out now, I want to see his face," Wiwwaro Sriaoun, 53, said.
Mr Netanyahu has faced criticism in Israel for not having sealed a hostage deal earlier after the security failure that enabled the Hamas assault in October 2023.
Hamas, which Israel has vowed to obliterate, still has a strong presence in Gaza despite heavy bombardment from the Middle East's most advanced military over more than 15 months and the assassination of its leader Yahya Al-Sinwar.
"The killing of leaders only makes the people stronger and more stubborn," senior Hamas official Sami Abu Zuhri said of Sinwar, filmed by an Israeli drone badly wounded throwing a piece of wood at the device in his final defiance of Israel.
The release in Khan Younis took place near the bombed ruins of Sinwar's house.
Israelis gathered in what has become known as Hostages Square in Tel Aviv, cheering and crying as they watched the release of the detainees on a giant screen. They will be taken to hospital for treatment.
Some people cheered as US Middle East envoy Steve Witkoff arrived at the square, in apparent gratitude for his role in securing the ceasefire deal. He shook hands with family members of hostages and others.
Around 1,200 people were killed and more than 250 hostages abducted in the Hamas attack on Israel, the bloodiest single assault on Jews since the Holocaust.
Israel's military response has killed more than 47,000 Palestinians and laid waste to Gaza whose 2.3 million people face severe shortages of medicine, fuel and food.
Around half the hostages were released the month after the attack - during the only previous truce - and others have been recovered dead or alive during Israel's military campaign in Gaza.
Hundreds of thousands of Gazans, most displaced repeatedly during the conflict, have returned to their neighbourhoods in the north, where the fighting was most intense.
Many have found their homes to be uninhabitable and basic goods in short supply.
Israel still lists 82 captives in Gaza, with around 30 declared dead in absentia.
In the course of the war, Israel has killed other leaders of Hamas as well as Lebanon's Hezbollah, striking major blows against Iran's network of proxies in the Middle East.
The fall of Iran-backed Syrian president Bashar al-Assad was also a boost for Israel.
Israeli forces have stepped up operations in another Palestinian territory, the West Bank, since the Gaza ceasefire came into effect, saying they are targeting militants there.