The old city of Hyderabad and other Muslim-majority areas in the city were decked up with huge flags, festoons, banners, welcome arches and lighting.
Various religious organisations held meetings to highlight the message of the Prophet and organised 'Mahafil-e-Milad' or special gatherings in praise of the Prophet to mark the occasion.
Hundreds of Muslims attended rallies taken out in different parts of the city.
Carrying green flags and raising slogans in praise of the Prophet, large number of youngsters participated in the central Milad procession organised by Sunni United Forum.
Rallies taken out from different parts of the old city joined the main procession at the historic Mecca Masjid.
As the Milad coincided with Sankranti, police made elaborated security arrangements in the communally sensitive old city to maintain law and order.
Security personnel were deployed around the places of worship and public places.
Hundreds attended the annual meeting organised by Majlis-e-Tameer-e-Millat at Nizam College grounds.
Addressing the meetings, religious scholars and community leaders exhorted Muslims to strictly follow the holy life of the Prophet for the success in this world and hereafter.
Various organisations conducted blood donation camps. Poor feeding was also arranged in various localities.
Markets were illuminated since Monday night for the Milad, with people in few places installing models of 'Kaaba' and 'Masjid-e-Nabavvi', the holiest shrines in Mecca and Madina.
At a mammoth public meeting organised by Majlis-e-Ittehadul Muslimeen Monday night, party president and Hyderabad MP Asaduddin Owaisi appealed the Muslim youth to bring a change in their lives by following the teachings of the Prophet.
The MP advised the youth to desist from non-Islamic ways of celebrations. Quoting a 'fatwa' issued by Jamia Nizamia, Owaisi asked youth not to dance or use music or colour or install models of holy shrines.
He said even 'naats' should not be played on loud speakers with high volume lest it inconvenience others.
The MP voiced concern over the violation of 'Sharia' limits during Milad by the youngsters who overspeed on their bikes and show stunts on the roads.