Themed 'All Back To Ours', the 90-minute closing ceremony depicted a "typical night out in Glasgow".
The ceremony at the packed 40,000-seater Hampden Park, which hosted the athletics events, got off to a rocking start with Scottish music artists singing their smash hits.
Canadian gymnast Frankie Jones was awarded the David Dixon Award for the best athlete of the Games. She won six medals, including one gold, in the rhythmic gymnastics events. The Games were participated by 4,750 athletes from 71 countries and territories in 18 sports over 11 days for 261 golds.
Singer Lulu kicked off the proceedings with her version of the old Isley Brothers US hit of 1959, 'Shout'. Scottish band Deacon Blue, which was formed in Glasgow in 1980, took the stage next and rocked the crowd with one of their most popular songs 'Dignity'.
The place was already abuzz with lightshows and fireworks when Scottish synthpop band Prides sent the decibel levels rising further with their foot-tapping number 'Messiah'.
There were also great performances by singer Dougie MacLean, who wrote Caledonia, and Glasgow synthpop band Prides.
But the biggest performer on the night was Australian singer Kylie. The 46-year-old Kylie, who released her 12th studio album this year, performance represented the Games' transfer to her native country. Australia's hurdles champion Sally Pearson also gave a message inviting all to the 2018 Games in Gold Coast.
Commonwealth Games Federation (CGF) president Prince Imran of Malaysia also thanked Glasgow for delivering a wonderful Games.
"Glasgow, it is a job well done. You have delivered the best Games ever," said Imran before adding the Glasgow slogan, "Pure, dead brilliant."
During the ceremony, Glasgow officially passed on the host city mantle to Australia's Gold Coast for 2018. The flag was was accepted by Jann Stuckey, Queensland Minister for the Commonwealth Games.
"On behalf of the people of City of Gold Coast in the state of Queensland, Australia, we accept with the greatest pride the responsibility of staging the 21st Commonwealth Games in 2018. We will aim to emulate your outstanding success," she said.
"Thank you Glasgow for taking us into your homes and your hearts and making us feel so welcome. In the last 11 days, we have experienced more energy, more excitement and a depth and warmth of friendliness like never before.
"Congratulations on delivering a Commonwealth Games that epitomises the soul of sport. Congratulations to the athletes, the officials and the volunteers - you collectively paved the way to deliver an event to be remembered for many years to come," she added.
The closing ceremony were also participated by the Clydesiders, some of the 15,000 volunteers, who helped the athletes and the spectators during the Games.