Karzai took the oath of office at the heavily fortified and spruced up presidential palace in Kabul nearly two month after he won the October 9 election by a landslide.
Following threats by the remnants of the Taliban forces to disrupt the proceedings, Kabul and its neighbourhood was placed under a massive security blanket by Afghan, US and NATO forces.
Speaking to US forces at breakfast after arriving at Bagram Air Base north of Kabul, Cheney described the inauguration as a "great and historic moment for the people of Afghanistan".
"Afghanistan will never go back to the camp of terror and tyranny," and his presence sent a message to Afghanistan "that the rest of the world stands with them as they set up the world's newest democracy," he said.
Karzai is expected to swear in his new cabinet late next week, and his government is likely to continue depending on the 18,000 troops in Afghanistan until stability returns to the country.
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