Eritrea's President Isaias Afwerki arrived in the Ethiopian capital on Saturday for a three-day visit, Ethiopia's state-run broadcaster and a Reuters witness said, days after the two neighbours declared their "state of war" over.
Earlier, Eritrea's Information Minister Yemane Meskel confirmed Isaias' departure. Ethiopian Prime Minister Abiy Ahmed met him at the airport.
The Reuters witness said thousands thronged Addis Ababa's main thoroughfare Bole Road sporting T-shirts emblazoned with the pictures of both leaders.
The flags of both countries fluttered from lamp posts, while some waved giant Eritrean flags.