Fireworks lit the sky at a crossing close to the Bulgarian border town of Ruse just after the stroke of midnight as the Bulgarian and Romanian interior ministers symbolically raised a barrier on the Friendship Bridge straddling the Danube River.
The crossing is a major transit point for international trade.
Checks on travelling by air and sea from Bulgaria and Romania were lifted in March 2024, but land checks continued until Austria last month dropped a veto it had maintained on the grounds that more was needed to stop irregular migration.
Border checks between France, Germany, Belgium, the Netherlands and Luxembourg were first dropped in 1985. The Schengen area now covers 25 of the 27 EU member states, as well as Iceland, Liechtenstein, Norway and Switzerland.
Ireland and Cyprus are not members of the Schengen zone.