The Israeli military says Hamas has released 13 Israelis and four Thais, in the second round of swaps under a ceasefire deal.
The army said Red Cross representatives transferred the freed hostages to Egypt late on Saturday. They were to be transferred to Israel later in the evening.
Hamas delayed the release by several hours, accusing Israel of violating the terms of a truce deal. The last-minute delay created a tense stand-off but ultimately went through after international mediation efforts.
Israel was to free 39 Palestinians later on Saturday as part of the deal.
Hamas captured some 240 hostages in an October 7 attack that triggered the current war with Israel.
A total of 50 hostages and 150 Palestinian prisoners are to be freed during the four-day truce.