The country gained independence after fighting for over fifty years of civil war with Arab-led Sudanese government.
Juba, the country's new capital witnessed people dancing on road, singing praises of the country's new president, Salva Kiir and banging on jerry cans.
People could be heard singing "We will never, never, never surrender" on the roads.
"Ah, I'm free," said a 27-year-old police man, Daniel Deng, he was also a ex-soldier.
The Republic of Sudan gained independence at 12:01am on Jul 8. Though the new country is one of the poorest, it is rich of oil.
"We were all born into war. All of us," said a minister who fled Sudan in 2003 adding "This generation will see the hope of the newborn nation."
It is anticipated that Sudan will become the 193rd country to be recognised by the UN.
Leaders including US State Secretary Colin Powell, UN General Secretary Ban Ki-moon, Sudan President Omar el-Basir were part of the celebrations after the country gained independence.