The California teen was rescued and taken to a hospital for evaluation but authorities say she appears to be in good shape.
It was the end of a tense manhunt that captured the attention of the nation. The suspected kidnapper and murder suspect was a family friend. He was killed by an FBI agent during the dramatic rescue.
"During an arrest attempt at the north end of Moorhead Lake in Idaho, suspect, James Lee DiMaggio, was shot and killed by an FBI tactical agent assigned by the FBI Headquarters unit," said San Diego Sheriff William D. Gore during a news conference Saturday afternoon.
Over 100 investigators spent Saturday combing through a rugged wilderness area near the town of Cascade, Idaho, trying to track down the missing 16-year-old and her suspected abductor.
Police found DiMaggio's car in the area hidden by brush on Friday. The car's license plates had been removed.
The discovery came two days after a horseback rider reported having a conversation on Wednesday with a man and a girl matching the pair's description. The rider realized it might be the missing teen and the suspect after seeing their photos in news reports and contacted authorities.
A large-scale operation immediately ensued. Federal, state and local resources were dispatched to Idaho to locate the pair.
U.S. Marshals' Fugitive Task Force Officers, flying in a U.S. Marshal's plane located DiMaggio's tent early Saturday morning and coordinated the operation.
The nationwide manhunt began nearly a week ago. DiMaggio is suspected of killing Hannah's mother, 44-year-old Christina Anderson and her 8-year-old brother, Ethan. Their bodies were found Sunday in DiMaggio's burning house near San Diego.
An Amber Alert was issued after Hannah disappeared.
DiMaggio, 40, was a longtime friend of the family, but friends say Hannah Anderson had been uncomfortable about his attitude toward her. He had admitted being infatuated with the teen. Marissa Chavez, Hannah's friend, says he once admitted to having a crush on the teen.
"He said, 'Don't think I'm weird or creepy Uncle Jim. I just want you to know that if you were my age, I'd date you,'" Chavez recalled.
Gore said Hannah's father was "elated" his daughter was found alive. Hannah is expected to be reunited with her father Sunday morning.