On the night of August 30, 1957, over 20,000 people gathered at Merdeka Square (Dataran Merdeka) in Kuala Lumpur to witness the transfer of power from the British. Prime Minister-designate Tunku Abdul Rahman Putra Al-Haj arrived at 11:58 p.m and joined members of the Alliance Party's youth divisions in observing two minutes of darkness. At the stroke of midnight, the lights were switched back on, and the Union Flag in the square was lowered as the royal anthem "God Save The Queen" played. The new Flag of Malaya was raised, accompanied by the national anthem Negaraku. The crowd then chanted "Merdeka" seven times. Tunku Abdul Rahman later delivered a speech, hailing the ceremony as the "greatest moment in the life of the Malayan people". Before addressing the crowd, he was presented with a necklace by representatives of the Alliance Party's youth, commemorating the historic occasion, with a map of Malaya inscribed on it. The event concluded at 1 a.m.

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On the morning of August 31, 1957, a celebration was held at the newly completed Merdeka Stadium. Over 20,000 people attended the ceremony, which began at 9:30 am. The attendees included the rulers of the Malay states, foreign dignitaries, members of the federal cabinet, and citizens. The Duke of Gloucester, the Queen's representative, presented Tunku Abdul Rahman with the instrument of independence. Tunku then read the Proclamation of Independence, with the crowd joining in the chanting of "Merdeka!" seven times. The ceremony continued with the raising of the National Flag of Malaya, accompanied by the national anthem played by a military band and a 21-gun salute. This was followed by an azan call and a thanksgiving prayer in honor of this momentous occasion.

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The day continued with the formal installation of the first Yang di-Pertuan Agong, Tuanku Abdul Rahman of Negeri Sembilan, at Jalan Ampang, and an installation banquet in his honor in the evening. The evening's events included a beating retreat performance and a fireworks display. Various sports and other events also celebrated the birth of the new nation.