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Cambodian Premier Minister Samdech Hun Sen and his colleagues received Vajpayee.
The prime minister was given a guard of honour and children waved Indian and Cambodian national flags as he stepped out of the aircraft.
During his stay, he will have talks with Hun Sen on the ongoing cooperation in the fields of defence, agriculture, tourism, hotel management and other key areas.
New Delhi and Phnom Penh will sign an agreement on exemption of visa for diplomatic and official passport holders.
Phnom Penh wants Hindustan Aeronautics Limited to refurnish its MIG 21 fighter jets, but due to lack of funds no progress has been made.
Vajpayee will also meet Cambodia's King Norodom Sihanouk and visit the world famous Angkor Wat, Bayong and Ta Phram temples in the country's northern tourist resort of Siem Reap before returning home.
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