The President, Mary McAleese, has hailed the peace process in Northern Ireland as a global example of success in a year that terrorism brought grief to the world.
In her Christmas message President McAleese said 2001 would always be remembered for the September 11 terrorist attacks on the United States and extended her condolences to those injured and bereaved as a result of the attacks.
There was growing fear and sorrow in America following September 11, she said, adding: "As Christmas approaches, our thoughts go to the injured, the bereaved and those whose hearts are filled with dread.
"We pray that they will find consolation and peace of mind in the spirit of this season with its gentle message of the transcendent power of love."
In Ireland, meanwhile, the "push towards permanent peace and real partnership" had moved into a "reassuring phase", she said.
"In Ireland, we who have known decades of conflict are on the way to becoming a light to the world," she continued.
"At last it seems a new generation is poised to experience the energy and the success that comes from working together and from sharing the island with generosity, tolerance and mutual respect."
President McAleese said there were still obstacles in the way of achieving permanent peace but there was a strong and resilient commitment to peace.
The challenges ahead of Ireland and the introduction of the euro on January 1 made the country "and exciting and dynamic place", said the President, who gave her blessing to volunteers from different agencies who gave their services to the country in the last year.
