Israeli Prime Minister Yair Lapid's press office confirmed on Sunday that the truce between Israel and Islamic Jihad was going into effect at 11:30 p.m. local time (20:30 GMT).
"I welcome the announcement tonight of a ceasefire between Israel and Gaza-based militants after three days of hostilities," Biden said in a Sunday statement.
He expressed concerns over reports of civilian casualties in Gaza.
"My Administration supports a timely and thorough investigation into all of these reports, and we also call on all parties to fully implement the ceasefire, and to ensure fuel and humanitarian supplies are flowing into Gaza as the fighting subsides," the US president said.
According to the Palestinian health ministry, over 40 people have died and more than 300 have been injured as a result of Israeli airstrikes carried out as part of the Breaking Dawn operation.
"As I made clear during my recent trip to Israel and the West Bank, Israelis and Palestinians both deserve to live safely and securely and to enjoy equal measures of freedom, prosperity, and democracy. My Administration will remain engaged with Israeli and Palestinian leaders to support that vision and to implement the initiatives launched during my visit to improve the quality of life for Palestinians and Israelis alike," Biden said.
The US president also commended Lapid for his leadership amid the recent flare up of hostilities and thanked Egypt and Qatar for their mediation efforts.
"My support for Israel’s security is long-standing and unwavering - including its right to defend itself against attacks," Biden said.
UN Spokesman Stephane Dujarric told journalists on Sunday that UN Secretary-General Antonio Guterres also welcomed the ceasefire and was calling on the sides to respect the truce.
Late on Sunday night, the Israel Defense Forces (IDF) said that air raid sirens sounded in southern Israel after the ceasefire took effect. The Jerusalem Post reported that multiple rockets were fired toward southern Israel minutes after the truce with the Palestinian Islamic Jihad went into effect.
The IDF launched an operation dubbed Breaking Dawn against the Palestinian movement of Islamic Jihad in the Gaza Strip on Friday. Lapid said on Sunday that the objectives of the Breaking Dawn operation had been achieved.
On Friday, the IDF confirmed that a senior Islamic Jihad commander in northern Gaza, Tayseer Jabari, was killed in an Israeli airstrike that day. Another high-ranking commander, Khaled Mansour, was killed in an Israeli airstrike in the city of Rafah in the Gaza Strip on Saturday night.