Some residents celebrated in the streets as government troops and paramilitaries entered the town centre and tore down the black flags of the ISIS terrorists who had ruled it with an iron fist for more than three years.
AFP correspondents saw little major damage in the town, although there had been casualties in the fighting as they saw the bodies of two terrorists in the back of a pickup.
Sharqat was the first goal of a major offensive launched on Thursday to recapture an ISIS-held enclave centred on the insurgent bastion of Hawija, one of just two pockets still controlled by the jihadists in Iraq.
Sector operations chief General Abdel Amir Yarallah said some 20 villages around Sharqat had also been recaptured from ISIS.
The next goal is Hawija itself, some 30 kilometres (20 miles) to the southeast.
The mainly Sunni Arab enclave, which was bypassed by government forces in their advance north to Mosul last year, has been a bastion of insurgency ever since the first year of the US-led occupation in 2003.
The territory still held by ISIS in the "caliphate" straddling Iraq and Syria it proclaimed in 2014 has dwindled, with stronghold after stronghold coming under assault on both sides of the border.
Iraq soldiers, police and paramilitaries launched an offensive against the terrorists' other remaining enclave earlier this week, pushing up the Euphrates Valley towards the ISIS-held towns of Anna, Rawa and Al-Qaim.