"Libyan lands have now been completely liberated," said Abdul Hafiz Ghoga, vice chairman of Libya's National Transitional Council.

Cheering crowds packed a central square in Benghazi for a ceremony that leaders said formally marked victory after eight months of fighting.

"We are now united. We have become brothers in love," said Mustafa Jalil, the council's chairman.

He called on Libyans to have "honesty, patience and tolerance" as the nation moves toward reconciliation.

The location of the ceremony was significant. Uprisings against Gadhafi's regime began in Benghazi in February.

Audience members carried signs, waved flags and batted around balloons. As leaders spoke, the sound of celebratory machine-gun fire filled the air.

Officials urged Libyans to lay down their arms, but not to let down their guard.

"Our people have achieved this freedom by the blood of our brothers, sisters and martyrs. Freedom is great and it's got a great price. It is costly. So turn your teeth into nails and bite on it very hard. Because preserving it is more difficult than attaining it," one military official said at the ceremony.