Before Vajpayee met Musharraf, he had set the peace ball rolling by meeting his counterpart Jamali on Sunday at the Jinnah Convention Centre in Islamabad.
The bilateral talks were the first since the two countries came to the brink of war two years ago. Both leaders agreed to maintain the renewed momentum in the ties.
Earlier, before Vajpayee reached Islamabad, Jamali had said, "Ice has been broken with the recent confidence-building measures initiated and taken by Pakistan and India."
"Prime Minister Vajpayee is a liberal and amiable man. I feel comfortable holding a dialogue with him," he had added
Vajpayee shake hands before beginning their talks.