Tens of thousands of Ukrainians took to the streets of Kiev to remember the 17 day- long mass street protests that eventually brought the agrarian nationalist Viktor Yushchenko to power.
The Ukrainian-speaking and west-backed was the loosing candidate in rigged presidential elections until the pro- Moscow, Russian-speaking, former prime minister Yanukovich, was forced to concede defeat.
The east-west division is still deeply felt in the former Soviet republic.
Mr Yushchenko - now president – made a speech in Independence Square, saying the nation had much to be proud of.
Some are disappointed that problems persist, but analysts say many expectations in 2004 were unrealistic.
President Yushchenko took to the stage to urge people to focus on the past year's achievements.
"We are on the right path, a path of justice, a path of freedom... we achieved things which no-one before us had, and I am proud of this," he said.
His face still scarred from dioxin poisoning, he added: "Each one of us paid for what we call freedom. I paid my price, each of you paid your price."
Transformation
US President George W Bush welcomed milestone but stressed the fragile nature of Ukraine’s fledgling democracy.
"Ukraine's leadership now faces a historic opportunity and has a historic
responsibility to fulfil the promise of the orange revolution and continue to
transform Ukraine into a fully democratic state," said a White House statement signed by the US president.
"The United States will continue to support the efforts of President Viktor
Yushchenko in advancing a democratic, prosperous and secure Ukraine, and
America is proud to call Ukraine a friend."
The celebrations, which included a concert, aimed to recreate the euphoria of last November, despite a recent split in Mr Yushchenko's team.
His former ally and now rival Yulia Tymoshenko, sacked as prime minister by Mr Yushchenko in September, was greeted loudly by the crowds.
She urged supporters to unite to beat the threat posed by Mr Yushchenko's rival for the presidency - the pro-Russian Viktor Yanukovych - in March's parliamentary elections.
"I am certain that just as we supported Viktor Yushchenko in the presidential election, we must now unite to elect a prime minister who will embody everything we fought for," she said.
"I want to dismiss all the rumours that it is Tymoshenko versus Yushchenko.
This cannot be so because this is the president that you and I helped bring to power."
Ukranian television reported that the anniversary was being remembered differently in the country’s east.
The streets were decorated with the blue ribbons of Mr Yanukovych, who lost last year's repeat run-off. The city rejected the Orange Revolution.