The arch rivals were involved in intense firing for four days, the worst in almost three decades, with missiles and drones fired at each other's military installations and dozens of people killed.
A ceasefire agreement was reached after diplomacy and pressure from the United States, but within hours, artillery fire was witnessed in Indian Kashmir, the centre of much of the fighting.
Blasts from air-defence systems boomed in cities near the border under blackout, similar to the previous two evenings, according to authorities, residents and Reuters witnesses.
Late on Saturday, India said Pakistan had violated the understanding arrived at to stop firing and that the Indian armed forces had been instructed to "deal strongly" with any repetition.
In response, Pakistan said it was committed to the ceasefire and blamed India for the violations.
By dawn, the fighting and explosions reported overnight had died down on both sides of the border, according to Reuters witnesses.
Power was restored in most areas along India's border towns after a blackout the previous night.
Trump praised the leaders of both countries for agreeing to halt the aggression.
"While not even discussed, I am going to increase trade, substantially, with both of these great nations," Trump said in a post on Truth Social.
"Additionally, I will work with you both to see if ... a solution can be arrived at concerning Kashmir."
In the border city of Amritsar, home to the Golden Temple revered by Sikhs, a siren sounded in the morning to resume normal activities, bringing a sense of relief, and people were seen out on the roads.
The fighting started on Wednesday, two weeks after 26 men were killed in an attack targeting Hindus in Pahalgam, in Indian Kashmir.
"Ever since the day terrorists attacked people in Pahalgam, we have been shutting our shops very early and there was an uncertainty," Satvir Singh Alhuwalia, 48, a shopkeeper in Amritsar, told Reuters.
"I am happy that at least there will be no bloodshed on both sides."
Officials in Pakistan said there was some firing in Bhimber in Pakistani Kashmir overnight but nowhere else, and there were no casualties.
The two countries, born out of British colonial rule in 1947, have gone to war three times - twice over the region of Kashmir.
Hindu-majority India and Muslim Pakistan both rule parts of Kashmir but claim it in full.
India blames Pakistan for an insurgency in its part of Kashmir that began in 1989 and has killed tens of thousands.Â
It also blames Pakistani Islamist militant groups for attacks elsewhere in India.
Pakistan says it provides only moral, political and diplomatic support to Kashmiri separatists.
The combined death toll in the recent skirmishes has reached almost 70, officials have said.
"More than me, my family is happy because my children and wife have been calling me every hour to check on me," Guruman Singh, a security guard in Amritsar told Reuters.
"Thank God the ceasefire happened."
