Russia and Georgia have agreed a truce brokered by French President Nicolas Sarkozy, and have approved the principles of a full peace plan.
The exact details of the proposals appeared to be still under discussion.
Georgian President Mikhail Saakashvili suggested some details agreed by Russia were unacceptable and said the document needed fleshing out.
Earlier, Russia announced its military activity in the area was completed and witnesses saw troops pulling out.
But despite the diplomacy and apparent withdrawal, rhetoric on both sides remained fiery and analysts were predicting a long road to peace.
SIX-POINT PEACE PLAN