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(CNN) -- NATO's military operation formally expanded into eastern Afghanistan on Thursday, extending the alliance's presence across the war-torn nation.
The move comes nearly five years to the day after the U.S.-led coalition invaded Afghanistan and then toppled the Taliban-led government, which harbored the al Qaeda terror network responsible for the September 11, 2001 terror attacks.
Power in the east was transferred from the U.S.-led coalition to NATO's International Security Assistance Force at a ceremony in the Afghan capital of Kabul attended by President Hamid Karzai.
U.S. and NATO troops stood to attention as a U.S. coalition flag was lowered and a NATO flag raised in its place to signify the transfer of command.
"This historic day marks another chapter in the continuing progress of Afghanistan," said Lt. Gen. Karl Eikenberry, commander of the Combined Forces Command-Afghanistan.
NATO says it now has security responsibility across "the whole" of Afghanistan, with a contingent of around 31,000 soldiers from 37 nations, including 12,000 U.S. troops, the bulk of which were stationed in the east.
About 8,000 American troops still will be operating under U.S. command in counter-terrorism, training Afghan police and army, performing reconstruction roles.
"A key point to remember in this transition is that the United States maintains its full commitment to Afghanistan. It will be undiminished," Eikenberry said.
"As a NATO member, the United States will remain by far the single-largest contributor of troops and military capability."
British Gen. David Richards, ISAF commander, said that bringing all of the troops under a unified command would improve the operation, giving it "far greater flexibility in the use of our assets."
The move "illustrates the enduring commitment of NATO and its international partners to the future of this great country," Richards added.
The United States launched Operation Enduring Freedom on October 7, 2001 and, Eikenberry said, "toppled the dark forces that had threatened international security and imposed their hateful vision on the common Afghan citizen."
Over the years, the coalition has fought remnants of the Taliban and has been on the hunt for al Qaeda leader, Osama bin Laden -- who is thought to be hiding along the rugged Afghan-Pakistan border.
NATO-ISAF, which has been a partner in what has come to be known as the war on terror, are also stationed in Afghanistan's north and west. They recently expanded into Afghanistan's southern provinces.
British, Canadian and Dutch troops are among those forces that have been in the forefront of the battle against resurgent Taliban militants in Kandahar, Helmand, and Uruzgan provinces.
The handover of command was expected to take place later this year, but alliance officials told Reuters that increased fighting with insurgent groups in southern Afghanistan showed the need to pool British, Dutch and Canadian troops under NATO with the U.S. forces.
The mission is the largest ground operation in the military alliance's history.
This year's upsurge in fighting is causing serious dislocation in southern Afghanistan, the U.N. refugee agency said.
The office of the U.N. High Commissioner for Refugees issued a statement Tuesday saying "an estimated 15,000 families" have been displaced in Kandahar, Helmand and Uruzgan provinces since July. (Full story)
The UNHCR says it is "concerned about the increasing number" of displaced people.
"This fresh displacement adds new hardship to a population already hosting 116,400 people earlier uprooted by conflict and drought," it said.
"We expect further displacement may take place until conditions are safe for the population to return to their homes."
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