Myanmar has marked the end of decades of military rule with a party, as lawmakers old and new celebrated the historic power transfer with karaoke and dancing.

A jubilant atmosphere filled the usually-serious Naypyitaw parliament on Friday, as military-backed MPs whose seats were lost to Aung San Suu Kyi and her National League for Democracy (NLD) party in November's landmark election accepted their fall from power with a smile.

Some took to the stage with songs, while others chose to end their time in power with a dance.

And the outgoing MPs weren't alone. As Suu Kyi's NLD lawmakers prepared to take their seats for the first time on Monday, they too joined in with the festivities.

NLD members danced on stage and shared jokes as they enjoyed the farewell lunch.

From Monday, business will resume as parliament is faced with the task of choosing parliamentary speakers and a president to replace U Thein Sein, who is due to step down at the end of March.

Suu Kyi is constitutionally barred from running for president because her two sons hold British not Burmese passports. She has vowed that she will be "above the president".

As he bid farewell to parliament on Friday, Thein Sein renewed his pledge to oversee a peaceful transfer of power.

"This is the first process of transferring power to a newly elected government since Myanmar gained independence from the British," The Myanmar Times quoted him as saying.

"It is a victory for Myanmar and its people."