Under the deal, Israel has agreed to end all hostilities and targeted killings, while Hamas will stop attacks against Israel and along the border.
At least 157 people have died since the flare-up of violence began last week.
Both sides continued to fire on each other as the 21:00 (19:00 GMT) ceasefire deadline approached, but no incidents have been reported since.
Earlier, a bomb exploded on a bus in the Israeli city of Tel Aviv, leaving three people needing surgery.
Wednesday also saw at least 13 people die in Gaza.
Israel has agreed to "stop all hostilities on the Gaza Strip, land, sea and air including incursions and targeting of individuals", the ceasefire deal says.
"All Palestinian factions shall stop all hostilities from the Gaza Strip against Israel, including rocket attacks, and attacks along the border," it stipulates. (+ video) » | Wednesday, November 21, 2012
