After waving at the gathered crowds lining the Champs-Elysees Boulevard, Hollande and French Prime Minister Manuel Valls took up places in a stand on the central Place de la Concorde square as the sun shone down on rows of tricolor flags and military insignia.
The parade kicked off with two lines of French soldiers wearing 1914-style uniforms marching into the square, followed by military representatives from all the countries who took part in the fighting.
Aircraft then trailed smoke in France's national colors above the Paris skyline as units from across the French military and emergency services made their way along the famous boulevard.
To finish this year's spectacle, a troop of dancers clad in black and white released a flock of doves, to the crowd's delight.
Celebrations are held on July 14 across France every year to mark the storming of France's most notorious prison at the beginning of the 1789 revolution, which saw the French Queen, Marie Antoinette and hundreds of other guillotined in the Place de la Concorde square -- then known as Place de la Revolution.
In Paris, festivities are set to continue with fireworks lighting up the city skyline on Monday evening. REUTERS To watch Raneem Bou Khzam's report, please click on the VIDEO above