With security forces keeping a hawk-eye vigil, the congregational prayers passed off peacefully barring sporadic incidents of stone-hurling in Jammu and Kashmir's summer capital Srinagar.
Muslims rededicated themselves to Islamic tenets of love and piety to mark the Festival of Sacrifice which commemorates the willingness of Ibrahim to sacrifice his son as an act of obedience to God.
Thousands of sheep and goats were sacrificed as people distributed the meat among neighbours and relatives on the pious occasion.
Children were a happy lot receiving Eidi (Eid money) from elders.
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Clerics and community leaders delivered sermons on the occasion of Eid-ul-Azha, also know Bakr-Id, which occurs the day after pilgrims conducting Haj, the annual pilgrimage to Mecca in Saudi Arabia by Muslims worldwide, descend from Mount Arafat.
Imams, in their speeches, asked the faithful to follow principles of love, compassion and kindness as preached by Islam.
In Srinagar, Jammu and Kashmir Chief Minister Omar Abdullah was among over 35,000 people who offered prayers at the Hazratbal Shrine on the banks of picturesque Dal Lake.
A police driver was killed when he lost control over of his vehicle, which was pelted with stones, and hit a pole in Baramulla district.