Thousands of people lined the streets of Glasgow to cheer the athletes, including six-time gold medallist Sir Chris, rower Katherine Grainger, swimmer Michael Jamieson and cyclist Neil Fachie.
The parade set off from Kelvingrove Art Gallery and Museum at about 4.15pm, making its way through the city via Sauchiehall Street and Buchanan Street to George Square.
Sir Chris, Britain's most successful Olympian, won two golds at the London Games, taking his total number of golds up to six.
Speaking shortly before the parade began, he said: "It's nice to be part of the team - it's not just me. People have said to me, 'I had no interest in the Games and ended up glued to the TV'. It's amazing to see. It's not been a London-based games - it's been for the whole of the UK."
The cycling sensation has been named as an official ambassador for the 2014 Commonwealth Games, to be hosted by Glasgow.
He said: "People are going to be massively behind it. I'm sure people will be surprised just how spectacular these games will be."
Scottish athletes won a record-breaking 13 medals at the Games and scored 11 medals at the Paralympics.
Grainger, along with team-mate Anna Watkins, brought home Team GB's first gold in the rowing while Jamieson took silver in swimming.
Fachie was victorious in the velodrome, winning gold for Paralympics GB.
Andy Murray, another Scottish gold medallist, was not in attendance at the parade after he was advised to rest following his US Open tennis championship victory.
Hundreds of Union flag and Saltire-waving well-wishers gathered outside Kelvingrove as the athletes boarded two floats for the parade.
Runner Lynsey Sharp said: "I've never seen Scotland like this other than for football, it's amazing.
"The whole Games ran really smoothly. A lot of athletes said it was the best-organised Olympics they'd been to. I just hope that the attention turns to Glasgow now."
Jamieson, who is currently based in Bath, said he hopes to come back to his home city to train in the future.
He said: "Glasgow is without doubt attracting world-class athletes. I think Glasgow will be up to the task of holding the Commonwealth Games.
"I'm delighted to be representing Scotland at the Commonwealth Games."
Jamieson praised the organisation at the London Games.
He said: "Everything went as well as it could have in London. I never had to wait in a queue in the food hall or wait for a bus, it's the little things like that."
The swimmer, whose silver medal triumph came in the 200m breaststroke, also congratulated fellow sportsman Andy Murray, saying he was "absolutely delighted" for the tennis player.
First Minister Alex Salmond joined thousands of people in George Square to welcome the athletes.
He said: "London has set the bar very high indeed and we are aware of that. Glasgow is going to rise to the challenge and hopefully do even better.
I think the volunteers were a huge success and that is certainly something we will be emulating. All the good things that happened in London we are determined to do more of."
Mr Salmond said his own Olympic highlights included victories by athletes from the north-east of Scotland in the Olympics and the Paralympics, as well as the expression on Mo Farah's face as he crossed the finish line.
He added: "In general, from a Scottish point of view, it's Sir Chris Hoy's extraordinary achievement of having the most medals of all-time of any athlete from these islands. We've been amazed, along with people across these islands, at the fantastic achievements over this summer and so many moments to savour."
Commenting on Andy Murray's absence from the parade, Mr Salmond said: "I think it is for very good reasons. Andy is exhausted after his efforts. He will be back in Scotland very soon, he assures me."
Mr Salmond said Murray's US Open win in New York had "put the icing on the cake of this extraordinary summer of sport".
Louise Martin, chair of sportscotland, said: "These celebrations are a fitting tribute for all of the Scottish athletes in Team GB and ParalympicsGB, and are a great opportunity for the people of Scotland to salute them for their tremendous efforts.
"There is terrific sporting momentum from the London Games' success and we will build on that in the run-up to Glasgow 2014, where Team Scotland is aiming to make 2014 the most successful-ever Commonwealth Games."
Gordon Matheson, leader of Glasgow City Council, said: "Scottish athletes like Sir Chris Hoy, Katherine Grainger and our own Michael Jamieson have written themselves into the history books as part of Team GB - and the excitement that we have all shared this summer is only going to grow here in Glasgow as we get closer to 2014."
The Scottish heroes
Infamously dubbed "Scolympians" by the First Minister, Scotland's Olympians secured 13 medals while Paralympians won 11 medals.
One of the highlights was the performance of
Sir Chris Hoy as he became Britain's most successful-ever Olympian when he took his Olympics gold medal tally to six. The 36-year-old triumphed in the keirin and the team sprint. A figurehead of British sport, he carried the Union Jack flag for Team GB in the opening ceremony of London 2012. On Sunday he is to be given the Freedom of Edinburgh, his home city, in recognition of his achievements.
Many of Scotland's triumphs were either on or in the water.
Katherine Grainger finally achieved the Olympic gold medal that had eluded her for 12 years when she won the double sculls with Anna Watkins. She has won six gold medals at the women's rowing World Championships but had had to settle for silver at the previous three Olympic Games. Born in Glasgow, the 36-year-old studied at Edinburgh University, where she took up rowing in 1993. She was appointed an MBE in 2006 for services to the sport.
Heather Stanning, from Lossiemouth, Moray, made history when she and rowing partner Helen Glover won Great Britain's first gold medal of the London Olympics in the rowing pair at Eton Dorney. Stanning, 27, is a captain in the Royal Artillery and was only paired with Glover three years ago.
Tim Baillie, 33, from Aberdeen, won Britain's first-ever gold medal in the canoe slalom, winning the two-man C2 event with Etienne Stott, 33. Aberdeen-born David Florence, 30, won silver with partner Richard Hounslow, 30, in the canoe slalom, C2.
Meanwhile, Glasgow-born swimmer
Michael Jamieson, 24, won silver in the 200m breaststroke while Aberdeen-born Luke Patience, 26, and partner Stuart Bithell, 26, won silver sailing in the men's 470 class.
The Olympics were also a momentous occasion for tennis star
Andy Murray, who claimed a gold and a silver. The Scot, from Dunblane, near Stirling, banished the heartbreaking memories of his Wimbledon final defeat against Roger Federer by beating the Swiss tennis legend on the same court to take the Olympic men's title. The 25-year-old then joined Laura Robson in the mixed doubles where, despite a brave effort, they lost out in the deciding tie-break.
Scott Brash, 26, from Peebles in the Borders, won gold with the equestrian jumping team, comprising Peter Charles, Ben Maher and Nick Skelton. The quartet enjoyed an extra-time triumph against Holland at Greenwich Park. Brash only linked up with his horse Hello Sanctos just before the London 2012 deadline last December.
Laura Bartlett, 24, and Emily Maguire, 24, both born in Glasgow, were part of the women's hockey team which won bronze.
Daniel Purvis, 22, whose mother is Scottish, won bronze as part of the men's artistic gymnastic team.
Scotland's Paralympic athletes also made a strong contribution.
Neil Fachie, 28, won Paralympic gold with his GB team-mate Barney Storey, 35, in the tandem blind and visually impaired one-kilometre time-trial. Fachie, who is partially sighted, and pilot Storey clocked a world record to win ahead of Spain's Jose Enrique Porto and Jose Antonio Villanueva at the Velodrome. The Aberdeen-born cyclist became the first Scottish Paralympic gold medallist of 2012. Fachie and Storey also won silver in the men's individual B sprint.
Craig MacLean, 41, from Grantown-on-Spey, won a cycling gold in the tandem sprint as sighted non-disabled pilot to partially-sighted Anthony Kappes, 39.
David Smith, 34, from Dunfermline, Fife, along with James Roe, Naomi Riches, Pam Relph and cox Lily van den Broecke won Britain's only Paralympic rowing medal, a gold in the mixed coxed fours.
Aileen McGlynn and her pilot Helen Scott took home a silver in the women's individual B 1km time trial and a bronze in the women's 3km tandem pursuit. McGlynn, 39, from Glasgow, who was born partially sighted, was presented with an OBE for services to disabled sport in 2009.
Karen Darke, 41, who lives in Inverness and has a spinal cord injury, won a silver in the women's handcycling H1-2 individual time trial.
Sam Ingram, 27, who lives in Edinburgh, took silver in judo, while Stef Reid, 27, who has a Scottish father, took a silver in the long jump. She lost her right foot in a boating accident at the age of 16.
Libby Clegg, 22, from the Borders, who is registered blind, won a silver in the women's 100m. She took the medal moments after her 18-year-old brother James won a swimming bronze in the S12 100m butterfly.