The Queen has declared the London Olympics officially open, before seven young athletes were given the honour of lighting the ceremonial flame.
The show featured British celebrities and sportspeople, including David Beck ham and Bradley Wiggins, and screen characters Mr Bean and James Bond.
In a speech watched around the world, Games chief Jacques Rogge said: "The Olympic Games are coming home tonight."
Flag-bearer Sir Chris Hoy earlier led out Team GB to cheers and applause.
The identity of who was to light the symbolic flame was shrouded in secrecy ahead of the ceremony.
The group of seven, chosen by British Olympic champions, each lit a single tiny flame on the ground, igniting 204 petals, one for each competing nation or territory. Long stems then rose towards each other to form a cauldron, signifying unity.
The flame made a dramatic arrival via the Thames on a speedboat carrying Beck ham, who handed the torch to Sir Steve Redgrave.
The show, billed as a quirky take on UK life, started with iconic images of London and Britain being beamed to the world, and all four countries of the UK being represented in song.
The field at the stadium in Stratford, east London, was turned into a green meadow, with a cast of 10,000 volunteers taking roles from British history.
The show took the watching world through "great revolutions in British society", from an agricultural setting through to the Industrial Revolution itself.
Steelworkers began forging material that transformed into golden Olympic rings, which appeared to float into the air to be suspended above the performers.
'Evening Mr Bond' There were cheers too as the crowd saw a film featuring an unlikely meeting between the Queen and 007 agent James Bond.
"Good evening Mr Bond," the Queen said in the clip, before they left together, apparently heading towards the Olympic Stadium in a helicopter.
A helicopter then flew over the stadium to the sound of the Bond theme tune, as two figures parachuted down, one dressed as the monarch.
As if by magic, the Queen appeared in the stands - part of a crowd of about 80,000 - amid cheers.
Mr Bond was not the only much-loved British character to take part. Mr Bean prompted laughter when he stepped up to command an orchestra playing the iconic Chariots of Fire theme.
aso4life1 at 28-07-2012 07:48 AM (12 years ago) (m)
We are competing today...I hope Naija do well but my main interest is the perfomances of our Basket ball team, D'Tigers and Canoe man Jonathan Akinyemi
if u attack my papa house, I'll retaliate but if you are peace loving,I will embrace you
Posted: at 28-07-2012 07:48 AM (12 years ago) | Hero