Malala, 20, reached her ancestral home in Makan Bagh in Mingora on a day-long trip along with her parents and two siblings, amid tight security, sources said.
Yousafzai and her family arrived in a helicopter provided by the Pakistani military, which took her to the town of Mingora in the Swat Valley from Islamabad.
Malala has been visiting Pakistan since Thursday, her first trip home since she was shot and airlifted overseas for treatment.
"It is her wish to again see her hometown, her school and her home, where she spent years of her life", she told The Associated Press.
"We're very happy that Malala has come to Pakistan".
Security had been visibly beefed up in Mingora the previous day. "God willing, there will be thousands of girls like Malala getting an education" in Swat.
PM Abbasi also addressed the gathering held for Malala Yousufzai, saying that Pakistan was proud the daughter of the nation had returned after making her place in the world.
"My initial plan was that I would continue my education, I would continue speaking out for the girls who can not go to school ... and one day once I finish my secondary education, I will apply to Oxford", she said. She later received post-trauma treatment in Britain. "Everything was happening by itself and I could not control anything", said an emotional youngster. "I have the same right on the country as any another Pakistani", Malala said.More news: David Matthews, father-in-law of Pippa Middleton, charged with alleged rape
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"Peace returned to swat thanks to vast sacrifices of my brors and sisters", he added during this lightning visit of little more than two hours to valley of Swat, a rgión tourist in foothills of Himalayas that in 2007 took control of Taliban.
In October 2012, Ms Yousafzai was shot in the head by a Taliban assassin who jumped inside her school van and yelled: "Who is Malala?".
The Taliban, expelled from valley by Army in 2009, accused her of vehicular "Western propaganda" and made a decision to assassinate her.
Malala's schedule for Friday was not clear, though there was some speculation she would return to her native Swat, where she was shot and where, earlier this month, a school built with her Nobel prize money was opened.
There, y multiplied violence, decapitations and attacks on girls ' schools, such as one that suffered malate, who since age of 11 wrote a blog in Urdu ( national language of Pakistan) on BBC website where, under pseudonym of Gul Makai, described panic under yoke of extremists. Pakistanis awakening to the news she was back in the country flooded social media with messages of welcome - but others accused her of a conspiracy to foment dissent.
People welcomed the Nobel laureate who broke into tears after landing in her hometown. 'Now I have to continue my education overseas, ' she added.
Many people said that awarding Nobel Prize to Malala Yousufzai was a political decision and a conspiracy against Pakistan.
"My teacher came into my classroom and called me outside". But she told me that I had won the Peace Prize. She advocates for the education of children, ' the premier stated.