The Kurdish-led Syrian Democratic Forces said some 500 people, including fighters, had surrendered and evacuated the village of Baghouz and its surrounding areas throughout the day.
Dozens of men, women and children climbed hills on foot and were later seen getting into small trucks after they were searched by SDF fighters manning the evacuation corridor.
Some 200 more people were expected to evacuate the village later on Monday.
The US-backed forces resumed their offensive on Baghouz last Friday, after a two-week pause to allow for the evacuation of civilians.Retaking the sliver of land would be a milestone in the devastating four-year campaign to end IS’ self-proclaimed “caliphate” that once straddled a vast territory across both Syria and Iraq.