Libyan Rebels have taken full control of Gadhafi's compound and the man who ruled the country with iron fists for 42 years is still no where to be found. The rebels are however celebrating this remarkable achievement right inside the fortress that used to be Gadhafi's seat of power.

Fierce fighting erupted around Moammar Gadhafi’s main military compound in Tripoli on Tuesday, hours after the Libyan leader’s son and heir apparent turned up free to thwart Libyan rebel claims he had been captured and rally supporters.

The surprise appearance of Seif al-Islam energized regime loyalists and underlined the potential for Gadhafi, whose whereabouts remain unknown, to strike back even as his grip on power seemed to be slipping fast.

Street battles between pro-Gadhafi troops and rebels were reported in several parts of the city, and the mood turned from one of euphoria to confusion and fear a day after opposition fighters swept into the capital with relative ease, claiming to have most of it under their control.

Thick clouds of gray and white smoke filled the Tripoli sky as heavy gunfire and explosions shook several districts of the city of 2 million people.

NATO warned the situation in Tripoli remains very dangerous and promised the alliance will continue bombing forces loyal to the 69-year-old Libyan leader if they keep fighting.