With around two-thirds of Scotland's 32 authorities declared, both the SNP and Labour had achieved some gains.
The SNP has taken the largest number of seats but Labour has returned to power in Scotland's largest local authority, Glasgow City Council, despite a high-profile SNP campaign.
Labour leader Gordon Matheson was re-elected, and immediately afterwards declared that the SNP "juggernaut" had rolled into a ditch.
Meanwhile, the SNP celebrated winning their first majority councils under the single transferable vote (STV) system - in Dundee and Angus.
The Liberal Democrats had one of their worst results in Edinburgh, where their previous lead was reduced to just three councillors. The former city council leader Jenny Dawe lost her seat.
Labour has become the biggest party in Scotland's capital.
Follow the Scottish election results with STV.
The Labour leader had a sense of humour after being hit on the shoulder with an egg during his interview with ITV Meridian.
Labour was only kicked out of office a couple of years ago and yet here it is giving the government a political wake-up call.
The Nationalist party led by First Minister Alex Salmond are expected to snatch Glasgow City Council from Labour hands.