Tunisia revolt and its Out come
A state of emergency was declared earlier, as rumbling nationwide protests over economic woes snowballed into anti-government demonstrations.
Unconfirmed reports say Mr Ben Ali has left the country.
Earlier, police fired tear gas as thousands of protesters gathered outside the interior ministry.
The protesters have put their bodies on the line, and many people have been killed. Tonight, they ignored the curfew to celebrate on the streets.
At the end of a dramatic day, President Ben Ali fled, no longer able to hold back the growing tide of public discontent and anger with his regime.
Now, the protesters will want to see the fruits of their demonstrations.
They won't settle for meagre reform, they won't settle for the same elite remaining in power. They're very happy that the president has gone, but they don't like the regime that surrounded him, and they'll want his cronies out as well.
At the end of a dramatic day, President Ben Ali fled, no longer able to hold back the growing tide of public discontent and anger with his regime.
Now, the protesters will want to see the fruits of their demonstrations.
They won't settle for meagre reform, they won't settle for the same elite remaining in power. They're very happy that the president has gone, but they don't like the regime that surrounded him, and they'll want his cronies out as well.
Doctors say that 13 people were killed in overnight clashes in Tunis, and there are unconfirmed reports that five people have been killed in protests on Friday outside the capital.
Troops have surrounded the country's main international airport, Tunis Carthage, and the country's air space has been closed.Mr Ghannouchi, 69, a former finance minister who has been prime minister since 1999, will serve as interim president.
In an address on state television, he promised to "respect the law and to carry out the political, economic and social reforms that have been announced".
The BBC's Arab affairs analyst Magdi Abdelhadi says Mr Ben Ali's demise will go down in history as the day that an Arab population rose and brought down a head of state they regarded as a dictator.
He says it may rattle the entire post-colonial order in North Africa and the wider Arab world.
Earlier, Mr Ben Ali - who had said in a TV address on Thursday night that he would relinquish power in 2014 - said he was dismissing the government and dissolving parliament, and that new elections would be held within six months.
Fall from power
- 17 Dec: A graduate sets himself on fire in Sidi Bouzid over lack of jobs, sparking protests
- 24 Dec: Protester shot dead in central Tunisia
- 28 Dec: Protests spread to Tunis
- 8-10 Jan: Dozens of deaths reported in crackdown on protests
- 12 Jan: Interior ministry sacked
- 13 Jan: President Ben Ali promises to step down in 2014
- 14 Jan: President dissolves government and parliament, then steps down
The state of emergency decree bans more than three people from gathering together in the open, and imposes a night-time curfew. Security forces have been authorised to open fire on people not obeying their orders.
Human rights groups say dozens of people have died in recent weeks as unrest has swept the country and security forces have cracked down on the protests.The protests started after an unemployed graduate set himself on fire when police tried to prevent him from selling vegetables without a permit. He died a few weeks later.
UK tour operator Thomas Cook is pulling out all 1,800 of its customers currently on holiday in Tunisia.
Thomas Cook and another holiday company, Thomson First Choice, are cancelling departures to Tunisia scheduled for Sunday 16 January. However, Thomson are not bringing home visitors already in Tunisia early.
Tourism is key to Tunisia's economy and an important source of jobs.
The UK, the US and France are among the countries advising against non-essential travel to Tunisia.
"The situation is unpredictable and there is the potential for violence to flare up, raising the risk of getting caught up in demonstrations," the UK Foreign Office said in its latest travel advisory.
In his speech on Thursday night, Mr Ben Ali, who had governed Tunisia since 1987, announced he would stand down in 2014.
Prime Minister Mohammed Ghannouchi: 'I assume responsibilities of the president'
The president, who earlier this week had blamed the unrest on "terrorists", also said he felt "massive regret" over the deaths of civilians in the protests.
On Thursday, US Secretary of State Hillary Clinton warned Arab leaders they would face growing unrest unless they enacted real economic and political reform.
Mrs Clinton was speaking in Doha at the end of a four-nation visit to the Gulf.
Mr Ben Ali, 74, was only Tunisia's second president since independence from France in 1956. He was last re-elected in 2009 with 89.62% of the vote
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