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Jubilant Kurdish fighters ousted Islamic State militants from the key Syrian border town of Kobani on Monday after a four-month battle — a significant victory for the Kurds and the U.S.-led coalition.

The Kurds raised their flag on a hill that once flew the Islamic State group’s black banner. On Kobani’s war-ravaged streets, gunmen fired in the air in celebration, male and female fighters embraced, and troops danced in their baggy uniforms.

The failure to capture Kobani was a major blow to the extremists whose hopes for an easy victory dissolved into a costly siege under airstrikes by coalition forces and an assault by the Kurdish militia.

For the U.S. and its partners, Kobani became a strategic prize, especially after they increased the number of airstrikes against Islamic State fighters there in October.

“(The Islamic State) gambled on Kobani and lost,” said senior Kurdish official Idriss Nassan. “Their defenses have collapsed, and its fighters have fled,” he said.

Kobani-based journalist Farshad Shami said the few civilians who remained had joined in the celebration. Most of the town of about 60,000 people had fled to Turkey to escape the fighting.

Several U.S. officials said they couldn’t confirm that Kurdish fighters have gained full control of Kobani, but added that they have no reason to disbelieve the claims.

A senior U.S. official said the Kurds controlled most of the town and have consolidated control particularly in the central and southern areas. The official said Islamic State militants still have a considerable presence in outlying areas around Kobani and are still putting up stiff resistance to the Kurds in those pockets outside it.

Kurdish officials and activists said Kobani was entirely in Kurdish hands, with only sporadic fighting on the eastern outer edges where the militants retained some footholds.

Ffighters of the main Kurdish militia were searching houses in the eastern suburbs and dismantling and detonating bombs and booby-traps left behind.

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