Prime Minister Paul Martin praised thousands of red-and-white clad revelers and Canadians everywhere for their "gentle national confidence" at a huge party marking Canada's 137th birthday.

"We as Canadians don't talk much about patriotism," said Martin, addressing a crowd of about 45,000 on his first Canada Day as prime minister. "But our love of country is second to no other.

"Our pride in our cultural diversity and the richness it brings to our society is second to no other."

Festivities are planned for Parliament Hill all day long. They kicked off with a parade and changing of the guard ceremony, and were followed by an address from Martin and Governor General Adrienne Clarkson.

"Happy Canada Day to you all," she said. It may be her last Canada Day as Governor General because her term expires in the fall.

Later, attendees were treated to a performance by Chantal Kreviazuk and there was also a flyover by the Snowbirds.

By the time night falls, revelers will be glad to end the day with a live show featuring rocker Tom Cochrane, capped off with a massive fireworks display.

Earlier, Martin issued a statement urging Canadians to reflect and look forward. "This day allows us to ponder the road we have travelled, to recall our greatest successes and, more importantly, to look to the future," he said.

"This future is built on the confidence we derive in having made Canada a truly open, welcoming and free country. This determination, the legacy of those who preceded us, makes of our country a symbol for justice, progress and inclusion."

Opposition Leader Stephen Harper also issued a statement praising all Canadians -- from the First Nations, to Acadians, British, French and waves of subsequent immigrants.

"Together, through the generations, we have built a country that is the envy of the world," Harper said.

"We can all be proud to call ourselves Canadians."

Of course, politicians and people in Ottawa aren't the only ones marking Canada's birthday.

From backyards to public parks, many Canadians will be capping a day of picnics with their own mini fireworks extravaganzas.

But from coast-to-coast, there are plenty of options for those who'd rather not light their own roman candle.

In Vancouver, the day's festivities are being combined with a celebration of the city's status as Olympic host in 2010.

More than a dozen Olympians were on hand for a Canada Day event that will include swearing-in ceremonies for new Canadians.

On the other side of the country, Charlottetown, P.E.I. is hosting a party billed as the "largest Canada Day celebration east of the nation's capital."

The 9th annual Atlantic Superstore Festival of the Lights encompasses three-days and four-nights of outdoor concerts and activities -- all of which are free on Canada Day.

Back in central Canada, Torontonians were invited to visit the country's first national urban park for a free party.

Activities planned for Downsview Park included performances by Spirit of West as well as an opportunity to become part of the entertainment.

Thousands of people are also creating "The Great Canadian Flag" by donning red or white T-shirts and assembling in the appropriate formation.

If you're in Winnipeg, Fort Gibraltar is the place to be for a day of activities that kicked off before noon. And in Regina, Saskatchewan, Wascana Park is the venue for the province's official Canada Day ceremonies.

In Afghanistan, where some 2,300 Canadian soldiers are stationed, the troops participated in games while the Canadian embassy in Kabul hosted a garden party.

Established by statute in 1879, the Canada Day tradition began as a commemoration of Confederation, when the first colonies of British North America became the Dominion of Canada.

Since then the holiday that began as Dominion Day changed it name to Confederation Day, and, in 1982, to Canada Day.

The tradition of a single, huge national celebration in Ottawa was established in the late 1950s, with a routine involving a day of Parliament Hill ceremonies followed by a mass band concert and fireworks display.

More than two decades later, the approach was changed to encourage local celebrations in communities countrywide.

Since then, provincial Canada Day Committees plan, organize and coordinate local celebrations locally.

As a statutory holiday, banks and government offices are closed. Most businesses are also closed, as employees working on a public holiday are entitled to premium pay.