Residents enjoyed themselves with Tibetan songs and dances in Lhasa's Dzongyab Lukhang Park.
"I am so pleased to attend the flag-raising ceremony of Serfs' Emancipation Day, and I wish Tashidelek (the commonly spoken salutation of Tibetans) on this very special day," said Trinley, a nomad from Tibet's Nagqu prefecture.
"Tibet has achieved a dramatic leap in the fields of science, economics, education, culture and the society over the past half-century," the 39-year-old added.
An elderly man from Tibet's Damxung county, also named Trinley, said he couldn't agree more.
"Fifty years ago, the living condition of Tibetans was miserable. Nowadays, Tibetans enjoy a wealthier life with improved living conditions such as new houses and upgraded infrastructure condition, I wish our great motherland will be increasingly prosperous and powerful."
"March 28 is a day to remember for Tibetans," Lobsang Jamcan, chairman of the Tibet autonomous region, said during a televised speech on Friday.
"Fifty-five years ago, Tibet ended the history of feudal serfdom and returned freedom to the more than 1 million serfs under the leadership of the Communist Party of China," he said.
Now, more than 2.3 million farmers and herdsmen in the region have moved into new homes thanks to an eight-year housing project that was completed in 2013.
Tibet's GDP exceeded 80 billion yuan ($13 billion) in 2013, 12.1 percent higher than the previous year.