The deal, brokered by the US and France, was announced by President Joe Biden and will see an initial 60-day halt to the fighting that has claimed thousands of Lebanese lives and displaced over a million people.
It will also allow tens of thousands of people both sides of the border to return home.
Israel will gradually withdraw its forces from Lebanon as the Iranian-backed militant group Hezbollah leaves its positions in the region, and retreats north of the Litani River – which runs around 30km (20miles) north of the border.
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The Lebanese army will take control of the territory to ensure Hezbollah doesn’t rebuild infrastructure there, with the country’s foreign minister Abdallah Bou Habib saying it could deploy at least 5,000 troops.
“This is designed to be a permanent cessation of hostilities,” Mr Biden said.
“Civilians on both sides will soon be able to safely return to their communities,” he added.
There appeared to be lingering disagreement over whether Israel would have the right to attack Hezbollah if it believed the militants had broken the agreement.
Prime Minister Benjamin Netanyahu said it was part of the deal but Lebanese and Hezbollah officials reportedly claimed otherwise.
“If Hezbollah breaks the agreement and tries to rearm, we will attack. For every violation, we will attack with might,” Mr Netanyahu said.
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5:57
Biden announcing ceasefire
Mr Biden said Israel had the right to quickly resume operations if Hezbollah did break the truce.
Within Israel, there was not total support for the ceasefire, with a poll conducted by Israel’s Channel 12 TV finding that 37% of Israelis were in favour of the ceasefire, and 32% against.
In Lebanon, people cheered on the streets as it was confirmed.
Israel bombards Lebanon right until ceasefire deadline
With less than half an hour to go until the ceasefire, Israel was still launching strikes on Beirut.
In the days and hours before, it had unleashed a wave of attacks across Lebanon, killing at least 42 people according to Associated Press.
Explosions lit up Lebanon’s skies in the day before the ceasefire with both Beirut and the port city of Tyre targeted by Israel as its cabinet discussed, and eventually voted for, the peace offer.
Israel also later launched strikes at the north Lebanon crossing with Syria for the first time, according to Lebanon’s transport minister Ali Hamieh.
The most recent deaths mean at least 3,760 people have been killed in Lebanon in the 13 months of fighting between Israel and Hezbollah, which includes the two months since the ground invasion.
Israel says it has killed more than 2,000 Hezbollah members. Lebanon’s Health Ministry says the war has displaced 1.2 million people.
In Israel, Hezbollah rockets have struck as far south as Tel Aviv and at least 75 people have been killed, more than half of them civilians.
But while the ceasefire will end hostilities in Lebanon, worries over the situation in Gaza continued.
Charities have repeated warnings of a humanitarian crisis in parts of the enclave and the United Nations Agency for Palestine Refugees (UNRWA) said that the coming winter would lead to more deaths as well.
Meanwhile, Hamas is still holding dozens of hostages who have spent more than a year captive.
But a snap poll for one Israeli news channel found only 37% of Israelis in favour of the deal.
Not everyone in the Israeli cabinet was supportive of the deal, either.
Itamar Ben-Gvir describes it as “a historic mistake” but didn’t threaten to withdraw his party from government. He was the one person who voted against the truce.
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So what have those critics extracted from Prime Minister Benjamin Netanyahu in return for their support?
Some have recently been pushing for Israeli occupation of Gaza or annexation of the West Bank.
The concern in Israel largely centres on enforcement and doubts that Hezbollah will stay true to the terms of the deal.
Netanyahu says Israel will strike Hezbollah the moment they show any attempt to rearm or regroup in southern Lebanon, but his willingness to do this deal suggests he is ready to move on from this particular war.
So with little public support, especially among many of his own base, why now?
Well, Netanyahu was honest in his televised statement when he said that the IDF needed to regroup and rearm – fighting on multiple fronts for more than a year has taken its toll especially among the thousands of reserve soldiers they rely on.
He is also under pressure from the incoming president-elect Donald Trump to wrap up the wars and agreeing this ceasefire was more straightforward than negotiations with Hamas in Gaza.
President Biden spoke of renewed efforts to get a ceasefire in Gaza, and there is hope Hamas will now feel isolated and forced to do a deal.
But the situation in Gaza is far more complex, with the lives of hostages at stake, Hamas’s leaders remain determined to fight and Israel’s plans for the Strip unknown.
A ceasefire between Israel and Hezbollah is a significant moment, it should and will be welcomed around the world, and it might be enough to calm Iran and the Iraqi militias.
As long as the hostages remain in Gaza however, and the humanitarian crisis there worsens with the onset of winter rains and lack of aid, the dark clouds will continue to hang over the Middle East.
Fighting between Israel and Hezbollah will end at 4am local time (2am GMT) on Wednesday, Mr Biden said.
It will bring an end to nearly 14 months of fighting which has seen more than 3,500 Lebanese killed and more than 15,000 injured.
Israeli strikes into Lebanon have forced 1.2 million people to leave their homes, while Hezbollah attacks have driven some 50,000 Israelis to evacuate the country’s north.
Hezbollah rockets fired into Israel have killed at least 75 people, more than half of them civilians, and more than 50 Israeli soldiers have died in the ground offensive in Lebanon.
The Iran-backed group began firing into northern Israel a day after Hamas militants rampaged across the border from Gaza into Israel in October last year, sparking the war in Gaza.
What does the deal involve?
The agreement reportedly calls for an initial 60-day halt in fighting between Israel and Hezbollah.
Hezbollah forces would leave their positions in southern Lebanon and retreat north of the Litani River, which runs around 30km (20 miles) north of the border with Israel.
Israel will withdraw its forces from Lebanon over a period of 60 days, Mr Biden said, as the Lebanese army takes control of its territory near the border to ensure Hezbollah does not rebuild its infrastructure there.
The move would allow civilians on both sides to “safely return to their communities,” he added.
Lebanon’s foreign minister Abdallah Bou Habib said the Lebanese army was prepared to deploy at least 5,000 troops in southern Lebanon as Israeli soldiers withdraw.
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5:57
Biden says ceasefire reached
What if the agreement is broken?
Israeli Prime Minister Benjamin Netanyahu said his country would respond forcefully to any ceasefire violation by Hezbollah, saying Israel would retain “complete military freedom of action”.
“If Hezbollah breaks the agreement and tries to rearm, we will attack,” he said. “For every violation, we will attack with might.”
Mr Biden also said Israel reserved the right to retaliate if Hezbollah breaks the terms of the ceasefire, adding: “What is left of Hezbollah and other terrorist organisations will not be allowed to threaten security again.”
Who will monitor the ceasefire?
The ceasefire agreement will be monitored by an international panel led by the US, along with thousands of Lebanese troops and UN peacekeepers deployed around Lebanon’s border with Israel.
Israel’s defence minister Israel Katz has insisted Israel’s military would strike Hezbollah if the UN peacekeeping force UNIFIL did not provide “effective enforcement” of the deal.
The US will work with the Lebanese army to deter potential violations, but no US combat troops will be stationed in the area, a senior US official said.
In a joint statement, Mr Biden and French President Emmanuel Macron said France and the US would work together to ensure the terms of the deal were followed.
What happens next?
Although the ceasefire deal brings to an end over a year of hostilities between Israel and Hezbollah triggered by the Hamas attack on Israel on 7 October last year, the devastating war in Gaza rages on.
Mr Biden said the US will make another push to achieve a ceasefire and hostage release deal between Israel and Hamas in Gaza.
Five survivors have been rescued and four bodies recovered in efforts to find people missing after a tourist boat sank in the Red Sea, a local official has said.
Two British people are believed to have been among the missing.
Egyptian military forces, which are co-ordinating operations, have now rescued 37 people out of the 44 on board – including five the day after it capsized. It means seven people are still missing and rescue teams have been “intensifying efforts” to find them.
Governor of the Red Sea region Amr Hanafi said that two Belgians, one Swiss, one Finnish and one Egyptian national were rescued on Tuesday, and four bodies had been recovered – although their nationalities are unknown.
“Survivors are being provided with necessary medical care,” he said in a statement on Facebook.
The 34-metre-long tourist boat Sea Story sank on Monday south of the Egyptian coastal town of Marsa Alam.
Among the foreign nationals on board were those from the UK, Ireland, US, Germany, Poland, Belgium, Switzerland, Finland, China, Slovakia and Spain.
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According to those on board, a “high sea wave” hit the vessel and caused it to capsize in “about five or seven minutes”, Mr Hanafi said.
Some passengers were inside the cabins, “which is why they couldn’t get out of the boat,” his statement added.
A Foreign, Commonwealth and Development office spokesperson said on Monday: “We are providing consular support to a number of British nationals and their families following an incident in Egypt and are in contact with the local authorities.”
The Sea Story left Port Ghalib, 40 miles (63km) north of Marsa Alam, on Sunday and was scheduled to reach its destination of Hurghada Marina on 29 November.
Officials said a distress call was received at 5.30am local time on Monday.
The boat sank 46 nautical miles off the coast of Marsa Alam.
The incident comes after the Egyptian Meteorological Authority issued a warning on Saturday about turbulence and high waves on the Red Sea.
The firm that operates the yacht, Dive Pro Liveaboard in Hurghada, said it has no information on the matter.
The Chamber of Diving and Water Sports (CDWS), a group founded by Egypt’s Ministry of Tourism, praised rescue teams for their “tireless efforts”.
“The CDWS team and board members are praying that the missing passengers are found safely and hoping that they will reunite with their families and loved ones soon,” the statement on Facebook added.