Government officials, including newly elected Vice President Omar Suleiman, met with opposition leaders over the weekend to work out a framework for negotiations. Mubarak's son, Gamal, resigned from the ruling party. And in a clear move to appease protesters, the government announced Monday a 15 percent increase in salaries and pensions today, according to the Associated Press.
Mubarak himself met with his Cabinet today.
Banks and some businesses were open, and coffee shops and restaurants opened their doors for business after a week and a half long protest that brought the city to a standstill. The Central Bank flew in 5 billion Egyptian pounds ($854 million) on military transport planes to banks across the country to ensure banks would have enough cash to start up. The streets were more crowded, with the telltale sounds of honking horns returning to Cairo.
Despite the signs of progress in the square and at the negotiating table, a level of underlying tension remained and everyone acknowledged the mood could sour in an instant.
Opposition leaders, including those of the banned Muslim Brotherhood, say they cannot completely trust the government's motives and proposals that stemmed from Sunday's meeting. Nobel Laureate Muhammed ElBaradei, who returned to the country to take part in the protests, was not invited to the talks and has dismissed them as political theater.
"They're meeting with people who are irrelevant. The real future is in Tahrir Square," said Gameela Ismail, member of the opposition El Ghad party and wife of opposition leader Ayman Nour. "The government is making the same, tired mistakes as in the past."
Thousands of people remain in Tahrir Square, but unlike recent days, the scene there today was almost euphoric.
People brought blankets, food and medical aid for those camped out overnights, and protesters were getting organized, even splitting the square into smoking and non-smoking sections. Vendors returned to the square to sell a wide variety of items -- chips, tea, even socks -- just days after the square turned into a battleground between protesters and pro-government supporters.
The 82-year-old Mubarak has said he won't run for another term in the September elections, but protesters continue to demand his immediate resignation.
Even as the dust is beginning to settle on the street, the concern in the United States, in Europe and in the Arab world, is whether the Egyptian government can implement an appropriate political process that will achieve proper elections.
Obama and his administration are pushing Mubarak hard to implement reforms immediately, though U.S. officials have refused to publicly comment on whether the embattled Egyptian president, who has held on to power for 30 years, should resign.
"Egypt is not going to go back to what it was. The Egyptian people want freedom, they want free and fair elections, they want a representative government, they want a responsive government," Obama said Sunday in a pre-Superbowl interview with Fox News' Bill O' Reilly. "And so, what we've said is you have to start a transition now."
"Part of the message that I think we're seeing all around the world is when you resort to suppression, when you resort to violence, that does not work," he added.
Obama acknowledged that the Muslim Brotherhood, a banned political and religious group in Egypt, is well-organized and "there are strains of their ideology that are anti-U.S."
ABC News' Jim Sciutto, Christiane Amanpour, Terry Moran and Jake Tapper contributed to this report.