Hamas released three Israeli civilians and Israel released 183 Palestinian prisoners.
It was the fifth swap of hostages for prisoners since the ceasefire began on January 19.
Twenty-one hostages and more than 730 Palestinian prisoners have now been freed.
The civilian hostages had been abducted during the Hamas-led attack on Israel on October 7, 2023, that left about 1200 people, mostly civilians, dead and sparked the war.
The prisoners released by Israel on Saturday included 111 from Gaza who were rounded up after the Hamas attack and detained without trial.
More than 47,000 Palestinians have been killed in Israel's retaliatory war following the Hamas attack, over half of them women and children, according to Gaza's Health Ministry, which does not say how many were militants.
The International Committee of the Red Cross said on Saturday it is increasingly concerned about release operations in the Israel-Hamas ceasefire following Hamas' heavily stage-managed release of three gaunt-looking Israeli hostages.
In Gaza, hostages Omar Ben Ami, Eli Sharabi and Or Levy took the stage and made short speeches before being ferried by the Red Cross back to Israel.
The scene drew strong rebuke from Israeli leaders who said the hostages looked like Holocaust survivors and denounced the release as a spectacle.
Following the release, the Red Cross said it "strongly (urges) all parties, including the mediators, to take responsibility to ensure that future releases are dignified and private".
The group said it conveyed that message "privately and publicly" to Israel and Hamas.
Meanwhile, observers are concerned that US President Donald Trump's stunning proposal to transfer the Palestinian population out of Gaza could put the fragile ceasefire deal at risk.
Morocco has denounced Trump's plan.
Moroccan Foreign Minister Nasser Bourita held talks Saturday with Iraqi Foreign Minister Fuad Hussein in Rabat in which the pair issued a statement calling plans to relocate Palestinians "a dangerous precedent contrary to the principles of international and humanitarian law."
They said such plans could undermine the region's security.
The two foreign ministers join officials from other Arab countries, including Saudi Arabia, in rejecting the plan Trump floated at a news conference with Israeli Prime Minister Benjamin Netanyahu on Monday.
Morocco is one of four Arab countries to have normalised ties with Israel as part of the Abraham Accords brokered during Trump's first term.
16°C