Hundreds of federal police officers have formed a guard of honour to farewell Commissioner Reece Kershaw on his final day as Australia's top cop.

Accompanied by his wife Michelle, Mr Kershaw used his marching out ceremony on Friday to warn of "diabolical" threats to the nation and reflect on his time as an officer.

He was appointed to the commissioner's role in 2019 by then home affairs minister Peter Dutton, and Mr Kershaw still had a year left on his contract when he resigned to spend more time with his family.

At one point during his farewell speech, he read out the same paragraph twice.

"How nervous am I?" Mr Kershaw joked, to chuckles from the crowd.

Deputy Commissioner Krissy Barrett now takes over the AFP's top job.

A piper played John Farnham's You're the Voice as Mr Kershaw

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