Turkey has received its first ambassador from Israel since the two countries broke off ties six years ago after an attempt to break the blockade of Gaza ended in violence.
President Erdogan welcomed Eitan Naeh to the presidential palace in Ankara, where the handshakes marked an end to several years of hostilities.
The two countries reached agreement in June to restore relations after nearly two years of talks behind the scenes.
Under the deal Israel has apologised for its actions in 2010 and agreed to pay compensation, while Turkey has promised to drop charges against Israelis involved.
Israeli commandos raided the Mavi Marmara humanitarian ship which was trying to break Israel’s blockade of Gaza, killing nine Turkish citizens and one Turkish-American.
The ensuing feud put an end – until now – to decades of military cooperation between the two countries.