The move of the American embassy from Tel Aviv to Jerusalem comes five months after President Donald Trump made his blockbuster announcement of the change in December.
The new diplomatic office, is in what was an existing U.S. consular building, was opened in a ceremony led by U.S. Ambassador to Israel David Friedman and attended by Israeli and American leaders.
The day has also been marked by violence, with at least 37 Palestinians killed by Israeli military forces and more than 1,600 injured in massive protests at the Gaza border against the embassy move, according to the Gaza Ministry of Health.
The president's daughter Ivanka Trump and Kushner, her husband, are representing the president at Monday's ceremony.