Thousands gathered in the capital Hargeisa for a military parade, traditional dances, and political speeches, with added excitement this year following Israel's recognition.
Israel has appointed its first ambassador to Somaliland, months after formally recognising the breakaway region in the Horn of Africa, the foreign ministry said Sunday.
Somaliland is willing to give the United States access to its minerals and military bases, a minister has told AFP, as the breakaway region of Somalia seeks international recognition.
Israel is perceived to be seeking partnerships, including exploiting breakaway regions to strengthen its geopolitical position.
Somaliland has operated as a fully functional de facto state with defined territory, population and government since declaring independence from Somalia in 1991.
Since Israel recognised Somaliland, the self-declared republic on the Gulf of Aden has become central to a struggle over military access, ports and regional influence across the Red Sea corridor.