Assad swore by the Koran before the country's parliamentarians in an extraordinary session.
"Syrians, three years and four months... have passed since some cried 'freedom'," he said, referring to the start of a March 2011 insurgency.
"They wanted a revolution, but you have been the real revolutionaries. I congratulate you for your revolution and for your victory," Assad told his supporters.
He said the crimes committed by the terrorists in the last three-and-a-half years showed the true colors of what the powers call a revolution.
Assad said the war was waged against the Syrian people rather than the government in order to justify foreign intervention in the country.
"Those who lost their way can now see clearly... the monstrous faces have been unveiled, the mask of freedom and revolution has fallen. "
The Syrian leader said the war on Syria was a plot for the region, stressing that supporters of terrorists will soon pay a high price as the situation will spill over and impact themselves.
Assad also hailed the Syrian people for their resistance, saying that the latest election was a bullet at the chest of the terrorists and those who support them.
More than 1,000 people were invited to the inauguration ceremony, with Assad arriving at the presidential palace in a black sedan car before being met on a red carpet by a military band.
Parliamentarians and other guests cheered for Assad in the hall where Assad was sworn in and then gave a speech.
Assad won a June 3 election by 88.7 percent, defeating two other candidates.
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