The military parade rolled through central Kiev, featuring heavy weaponry, tanks and marching troops.
Ukrainian President Petro Poroshenko addressed those in attendance, promising $2.6 billion would be dedicated to re-equipping the army.
He said many of the 1,500 soldiers marching in Sunday's parade would immediately be sent to the front in eastern Ukraine, where the military is fighting pro-Russian separatists.
"It is clear that in the foreseeable future, unfortunately, a constant military threat will hang over Ukraine. And we need to learn not only to live with this, but also to be always prepared to defend the independence of our country," Poroshenko said.