Kasab was hanged to death at 7:30 am Indian Standard Time (IST) at Yerwada jail of Pune, seventh largest metropolis in India, media reports.
Earlier this month, Indian President Pranab Mukherjee rejected his mercy plea.
“Kasab was shifted to Yerwada jail two days ago. He was hanged at 7:30 this morning (0200 GMT),” Maharashtra home minister R. R Patil told reporters in Mumbai.
“His execution is a fitting tribute to the victims of Mumbai attacks,” Patil added at a news conference.
Mohammed Ajmal Amir Kasab, was one of 10 gunmen alleged of waging a war against the Indian State, involved in the 60-hour siege of Mumbai, attacks on the railway station, luxury hotels and a Jewish cultural center.
Kasab was sentenced to death in May 2010 after he was found guilty of a string of charges, including waging war against India, murder and terrorist acts.
He appealed in the Supreme Court claiming he did not receive a fair trial but his petition was struck down in August.
During the 2008 attacks, the heavily armed Islamist gunmen stormed targets in Mumbai including luxury hotels, a Jewish centre, a hospital and a bustling train station.
India blames the Pakistan-based Lashkar-e-Taiba (LeT) militant organisation for training, equipping and financing the gunmen with support from “elements” in the Pakistan military.