Fourteen Israeli hostages, including nine children, have been released by Hamas.
Among those freed is a four-year-old Abigail Idan, who has dual Israeli and United Kingdom nationality, and eight other children.
Three foreign nationals have also been handed over to the Red Cross.
In exchange, Israel has released 39 Palestinians prisoners, its Prison Service said.
Sunday was the third day of a four-day pause in fighting between Israel and the Hamas militants in the Gaza Strip.
Hamas has handed over hostages on each day, in exchange for Palestinian prisoners released by Israel.
Gazans have been using the pause in fighting to get desperately-needed supplies of fuel, food and medicine.
Hamas’ attacks on October 7 killed 1,200 people, with about 240 taken hostage.
Since then, Gaza’s Hamas-run health ministry said more than 14,500 people have been killed in Israel’s retaliatory attacks.