Revellers splashed colour on each other as they exchanged hugs and embraces across the lanes and by-lanes in the capital to celebrate the festival of colours.
Wearing clothes dyed in myriad hues, people visited friends and relatives and gifted 'gujia' (a sweet) besides smearing 'gulal' on each other's faces.
Children had most of the fun as they sprayed coloured water using water guns and hurled water-filled balloons on people from the safety of their rooftops.
President Pratibha Patil and Prime Minister Manmohan Singh greeted the nation on the occasion of the festival.
"Holi is a festival of colours that heralds joy, hope and fulfilment in our lives... May this festival bring together all the colours of India's diversity in a rainbow of unity," Patil said in her message.
"Let the spontaneity and liveliness of this spring festival yet again affirm the togetherness of our multi-cultural nation," the Prime Minister wished.
Veteran BJP leader L K Advani, who celebrated Holi with family and friends at his residence, said there is no similar festival like this when people of all social strata join together and share the fun.
Several party leaders, including Ananth Kumar, attended the 'Holi Milan' programme at his residence.
In the national capital, the day passed off peacefully. The police had issued warning against hooliganism in the guise of revelries.
Commuters faced inconveniences in the morning as the public transport, such as buses and metro were shut till late afternoon.