Prince Albert II formally ascended to the throne of Monaco three months after the death of his father, Prince Ranier.
Celebrations began with a solemn Roman Catholic Mass in the cliff-top cathedral where Prince Rainier is buried.
Wearing a dark suit, the 47-year-old prince knelt before the tiny principality's archbishop to receive a blessing.
Recent revelations of his 22-month-old love child did nothing to dampen the applause from onlookers.
He was joined by his family. His younger sister, Princess Stephanie, wore a white and pink floral dress.
His elder sister Princess Caroline, wearing a checked coat and a wide hat, appeared to shed a tear as they left the church.
Her three children, Pierre, Charlotte and Andrea Casiraghi were also there for the proceedings.
After the service, the family made the short walk back to the palace for further celebrations.
Prince Albert, who has a new coat of arms, was also due to receive the town's keys from the mayor.
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