The new government has the backing of both Fatah and Hamas
A new Palestinian unity government has been sworn in, marking a key step towards ending a major rift between factions in the West Bank and Gaza.
Palestinian President Mahmoud Abbas hailed the event, saying "a black page in history has been turned forever".
The two sides had governed separately since Hamas, which won elections in 2006, ousted Fatah from Gaza in 2007.
Israel says it will not deal with a Palestinian government backed by Hamas, which is sworn to Israel's destruction.
Israel suspended crisis-hit peace talks with the Palestinians in April in response to the announcement of the reconciliation deal.
Hamas, which is designated a terrorist organisation by Israel and other countries, opposes the peace talks, though President Abbas has said the new government will abide by previous agreements.
'One people'
The new government comprises 17 politically independent ministers and will be tasked with organising elections to be held within six months.
It is headed by incumbent Palestinian Prime Minister Rami Hamdallah.
The ministers took the oath of office in a televised ceremony at President Abbas' compound in Ramallah.
"Today, with the formation of a national consensus government, we announce the end of a Palestinian division that has greatly damaged our national case," said President Abbas.
"This black page in history has been turned forever."
As the new administration took office, the Hamas government in Gaza resigned.
Hamas' outgoing Prime Minister Ismail Haniya welcomed the new cabinet as "a government of one people and one political system".
"We're leaving the government, but not the nation. We're leaving the ministries but not the question of the nation," he said.
Three Gaza-based members of the new government were denied permission by Israel to cross into the West Bank for the ceremony.
Israel tightly controls who exits Gaza into its territory as part of what it says are security measures to prevent attacks.
Israel warning
President Abbas' decision to reconcile with Hamas has been denounced by Israel. Its Prime Minister Benjamin Netanyahu urged world leaders not to "rush to recognise" the new government.
"Hamas is a terrorist organisation that calls for Israel's destruction, and the international community must not embrace it. That would not bolster peace, it would strengthen terror," he told a cabinet meeting on Sunday.
Israel has said it would cease all but security co-ordination with the Palestinians if the government was formed.
A statement from Mr Hamdallah's office denounced Mr Netanyahu's remarks, calling them part of a campaign intended to "cement [Israel's] occupation by all means".
The US, which has sponsored the Israel-Palestinian peace talks, has expressed concern over any Hamas role in the new government.
In a phone call with President Abbas on Sunday, US Secretary of State John Kerry said the new government must "commit to the principles of non-violence, recognition of the State of Israel, and acceptance of previous agreements with it," the State Department said.
When Hamas and Fatah formed a coalition government in 2006, the US and other Western nations withheld millions of dollars of aid to the Palestinians because of Hamas' participation.
The Hamas-led government was dissolved by President Abbas in June 2007 in a move not recognised by Hamas, a day after Hamas forces ousted Fatah from the Gaza Strip.
Hamas had continued to govern in Gaza, and the Palestinian Authority (PA) under President Abbas in the West Bank.
The enduring split has been deeply unpopular among Palestinians but previous reconciliation efforts have failed.
However, Hamas' isolation in Gaza and the failure of peace talks with Israel to produce tangible results created fresh impetus for both sides to heal the division.
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