The resignation was a triumph for a swelling Lebanese opposition, which has been calling for Syria to withdraw its soldiers and disentangle its intelligence services from Lebanon's institutions. Tensions had been mounting since the Feb. 14 assassination of former Lebanese Prime Minister Rafik Hariri, which many blamed on Syria.
The fall of the government marked a rare flexing of public will in the Arab world, where similar protests have been brutally suppressed.
Minutes after Karami announced he was stepping down, jubilant demonstrators -- shouting, waving flags, and handing red roses to soldiers -- demanded that Syrian-backed President Emile Lahoud bow out, too, and pressed on with their calls for Syria to withdraw its troops from the country.
Syria was silent about the changes in Beirut, where it ruled unopposed for years, even deciding on Lebanon's leaders, after deploying troops ostensibly as peacekeepers during the 1975-90 civil war.
But the dramatic developments, which were reminiscent of Ukraine's peaceful ''orange revolution" and broadcast live across the Arab world -- could provoke a strong response from Syria, which deploys 15,000 troops in Lebanon. It also could plunge this nation of 3.5 million back into a period of uncertainty, political vacuum, or worse.
In Washington, US officials called the government's dismantling a victory for the Lebanese people and their efforts to hold new elections. White House spokesman Scott McClellan stressed the selection of a new government ''should be free of all foreign interference. That means Syrian military forces and intelligence personnel need to leave the country," he said. ''That will help ensure that elections are free and fair."
The Lebanon Parliament had gathered to debate a no-confidence motion, but the government was expected to survive. After hours of bickering, Karami announced his decision to dissolve the government.
''Out of concern that the government does not become an obstacle to the good of the country, I announce the resignation of the government I had the honor to lead," Karami told lawmakers.