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Jimmy Morales was elected in October after huge anti-corruption demonstrations that led to the prosecution of a former president and vice-president.
He has no previous experience in government. In his inaugural address, Jimmy Morales promised to fight against corruption.
US Vice-President Joe Biden attended the ceremony.
It was the first time in 30 years that such a high-ranking American official was present at a Guatemalan inauguration.
In a wide-ranging speech, Jimmy Morales praised the anti-corruption movement and said Guatemala was going through a “renaissance”.
He also promised money for health and education.
“We want quality education for everyone, which prepares our children for a modern technical world,” Jimmy Morales said.
His critics said President Jimmy Morales gave few clues as to how he was going to fight corruption and how he was going to deal with Guatemala’s high levels of violence, poverty and social inequality.
Last week legal proceedings began against an aide to Jimmy Morales who is suspected of human rights abuses related to Guatemala’s long and bloody armed conflict which ended in 1996.
Fourteen former military officers – many supporters of Jimmy Morales’s party – were arrested on similar charges.
Jimmy Morales has denied links to the former military officials.
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