The celebrations started on Wednesday evening, with singers and artists performing on the streets across the country, with fireworks going off in the background.
Prime Minister Benjamin Netanyahu, who sent a recorded message to the official ceremony in Jerusalem on Wednesday evening, praised Israel's accomplishments.
"World leaders come to Jerusalem every day. They say to me Israel is a vibrant and entrepreneurial country, creative spiritually and materially," Netanyahu said, according to a statement from his office.
Netanyahu said while Israelis face "challenges ahead," he is "certain" they could overcome them together.
The celebrations would continue throughout Thursday, with many Israelis celebrating with barbecues or watching aircraft flybys over the country's beaches.
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