Parades in Edinburgh and Aberdeen were among 300 events taking place across the globe.
Veterans minister Keith Brown said those who had served in the armed forces were a "significant asset" to the country.
He said ministers were "working hard" to help veterans on issues such as healthcare, housing and education.
Mr Brown, who served in the Falklands conflict, attended the celebrations in Edinburgh.
He said: "Armed Forces Day is a chance for communities across Scotland to say thank you to our service personnel, veterans and their families for their service, commitment and courage.
"Veterans and their families are a significant asset to businesses and the recently set-up Strategic Group will focus efforts on boosting their career opportunities once they leave the armed forces.
"I am pleased that this group, chaired by Mark Bibbey of Poppyscotland, is getting to grips with this agenda and look forward to seeing it drive forward action in coming months."
Serving members of the forces and veterans marched to Edinburgh City Chambers on the Royal Mile, where earlier this week the Armed Forces Day flag was raised.
Lord Provost Frank Ross said: "This city has a long and proud tradition of supporting the armed forces and our veterans.
"Holding a day in their honour provides us with an opportunity to do all we can to thank them for all they do to keep us safe."
In Aberdeen, Vice Lord-Lieutenant Andrew Lawtie took the salute as the parade passed the city's Town House,
He said: "Aberdeen always embraces this opportunity to say thank you to personnel for their service to the country by turning out in large numbers to watch the parade.
"It's heart-warming to see spectators young and old pay tribute to the British armed forces community for their hard work, dedication and efforts to keep us safe in the UK and across the globe.
"The pipe bands, marching personnel and military vehicles fill the length of Union Street, creating quite a moving spectacle."
Prime Minister Theresa May and Defence Secretary Michael Fallon both marked the day by taking part in the celebrations in Liverpool.
Scotland has paid tribute to servicemen and women at events held to commemorate Armed Forces Day.