He visited the city’s historic walls and the Apprentice Boys of Derry Siege Museum before meeting with members of the organisation.
This included meeting its governor Graeme Stenhouse, general secretary Billy Moore and former assembly speaker Lord Hay.
Mr Moore presented the Taoiseach with a book tracing the Siege of Derry.
The Taoiseach was also presented with a crimson tie, the official colour of the apprentice boys of Derry.
Mr Moore invited him to wear the tie if Mr Varadkar ever came to Londonderry to watch a loyal order parade.
Mr Varadkar later visited the Ráth Mór centre in Creggan estate.
A small group of around a dozen dissident republican supporters staged a silent peaceful protest outside the centre.
They held aloft a number of placards as the Taoiseach walked from his car the short distance inside where he received a warm welcome.
After hearing a local choir he met a range of local community representatives.
He again re-affirmed his government’s commitment to cross-border initiatives including the A5 road between Newbuildings outside Londonderry and Aughnacloy in Tyrone.
Later Leo Varadkar will attend a dinner for former Foyle MP Mark Durkan to honour his commitment to peace and reconciliation.
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