Former Prime Minister Shimon Peres has been formally inaugurated as the ninth president of Israel.
Arriving at the Knesset Mr Peres lay a wreath honouring fallen soldiers
The 83-year-old, who was elected last month, will serve a seven-year term.
His predecessor, Moshe Katsav, was forced to resign earlier this year after admitting charges of sexual harassment and abuse of authority.
Polish-born Mr Peres has held almost every senior cabinet position, and in 1994 was awarded the Nobel Peace Prize for his work on the Oslo peace accord.
Mr Peres was escorted to the Israeli parliament, the Knesset, by senior military leaders and Knesset Speaker Dalia Itzik as the Israeli national anthem played.
He paused briefly to lay a wreath at a memorial honouring fallen soldiers, before entering parliament to the sound of a trumpet salute.
After reciting the oath of office, Mr Peres said: "I am no longer the messenger of a party but a trustee of the nation, of all the citizens of the state... (who) must encourage the peace process. Within the house. With our neighbours. In the whole region."
Mr Peres also said that he would work to ensure that citizens of Israel who are not Jews do not suffer discrimination.
"If they do not enjoy complete equality, we will not be at peace with ourselves and with our fellow men.
"Israel... must be a good and warm home for Jews who are not Israelis, as well as for Israelis who are not Jews."
Speaking at a weekly cabinet meeting ahead of the swearing-in ceremony, Israeli Prime Minister Ehud Olmert paid tribute to Mr Peres saying:
Born 1923 in Poland
Emigrated to British-administered Palestine 1934
Member of parliament since 1959
Prime minister in 1984 and 1995-1996
"Shimon Peres is one of the most important figures in Israel over the past 60 years.
"He is a person who is welcomed and known in the entire world as a representative of the state of Israel."
Mr Peres is Israel's elder statesman - he has twice served as the country's prime minister, though was never elected to the post in his own right.
His new role as president is largely symbolic, but the BBC's Christian Fraser in Jerusalem say there will be many Israelis hoping Mr Peres can bring some dignity back to political life.
Mr Katsav's predecessor, Ezer Weitzman, also departed in controversy after it emerged he had accepted thousands of dollars from a millionaire businessman while serving as an MP.
One man who will certainly be happy to see Mr Peres installed as president, our correspondent say, is Prime Minister Ehud Olmert.
His inauguration removes any lingering possibility that Mr Peres could become a compromise candidate to replace him, should Mr Olmert come under serious pressure next month to resign when a parliamentary inquiry reports on the failures of the Lebanon war.