The Hollywood actor hosted the 'Celebrating America' - a 90-minute, multi-network broadcast marking Mr Biden's inauguration.
It featured musicians like Bruce Springsteen, Justin Timberlake and Katy Perry, as well as appearances from the likes of actress Eva Longoria and former NBA star Kareem Abdul-Jabbar.
In his opening speech, Hanks noted that inauguration day is "a tradition, an act that marks the commitment of a new four year term".
"Yet, in truth, inauguration day is about more than the swearing in of our next national leaders," he continued.
"This day is about witnessing the permanence of our American ideal."
President Biden also gave a stirring speech. "Because of you, democracy has prevailed," he told the American people.
"That is why Jill and I, Kamala and Doug, wanted to make sure that our inauguration was not about us — but about you."
Springsteen gave the first performance - a gritty rendition of his song 'Land of Hope and Dreams'- on the steps of the Lincoln Memorial.
Multiple Grammy winner John Legend covered 'Feeling Good', a hit popularised by Nina Simone.
In a pre-recorded message, former US presidents Barack Obama, George W Bush and Bill Clinton voiced their support for Mr Biden and paid tribute to the US democracy.
"I think the fact that the three of us are standing here talking about a peaceful transfer of power speaks to the institutional integrity of our country," Mr Bush remarked.
Non-celebrities were also involved, such as Brayden Harrington, a 13-year-old who made headlines after publicly stating that Mr Biden's stutter made him feel more confident about his own.
Popstar Katy Perry closed the ceremony, performing chart-topper 'Firework' as the new President and First Lady looked on.