The courageous 15-year-old, who was gunned down on her school bus after speaking out for women's rights in Pakistan, walked from Birmingham's Queen Elizabeth Hospital today after making a miraculous recovery.
Malala, described by hospital staff as a 'strong young woman', had been targeted after heroically speaking out against the Taliban regime and calling for greater women's rights in her home country.
Remarkably, she survived the assassination attempt in October and was rushed to Britain for emergency treatment from a team neurosurgeons.
Medics today took the decision to release Malala to recuperate with dad Ziauddin, mum Toorpekai and brothers Khushal and Atul at the family's temporary home in the West Midlands.
Just 87 days since she was shot, the smiling teen was pictured leaving one of the hospital's wards walking unaided and hugging nurses who had helped care for her.
And in a video released by the hospital, Malala is seen striding confidently down a corridor hand-in-hand with a nurse, before turning to wave at staff at the door.
Medics said that Malala will be re-admitted later this month or early February to undergo reconstructive surgery on her skull.
She will visit the hospital every week to attend out-patient clinical appointments where doctors will assess her progress.
Medical Director Dr Dave Rosser said: "Malala is a strong young woman and has worked hard with the people caring for her to make excellent progress in her recovery.
"Following discussions with Malala and her medical team, we decided that she would benefit from being at home with her parents and two brothers.
"She will return to the hospital as an outpatient and our therapies team will continue to work with her at home to supervise her onward care.
"Over the past couple of weeks Malala has been leaving the hospital on a regular basis on 'home leave' to spend time with her father Ziauddin, mother Toorpekai and younger brothers, Khushal and Atul.
"During those visits assessments have been carried out by her medical team to ensure she can continue to make good progress outside the hospital."
She was admitted on October 15 last year following the attack on October 9.
She was blasted in the head by the Taliban as she sat on a bus in the Swat Valley, northern Pakistan, after school.
Since Malala was shot there have been a number of candlelit vigils in Birmingham and across the world to pray for her recovery.
Celebrities including Madonna and Angelina Jolie have joined millions of people across the world to support Malala.
There are growing calls for her to be considered for the Nobel Peace Prize.
Since her arrival in Britain there have been concerns for the teenager's safety.
Just a day after she was admitted, well-wishers had to be turned away from the hospital after they turned up claiming to be family members.
And in November the shooting, banned hate preacher Sheikh Omar Bakri sparked global outrage when he threatened to issue a fatwa – a death sentence - against Malala – when he branded her "a traitor to Islam.