The First Lady skipped traditional red, white and blue in favor of classic Audrey Hepburn. Mrs.O wore a black and white Narciso Rodriguez dress, silver flats with her hair swept back into a simple bun.
The two-tone, square neck tank dress featured an empire-waisted black bodice (no belt!) and white cocoon skirt that tapered in at its knee-length hemline.
Daughters Malia -- whose birthday just happens to fall on Independence Day -- and Sasha wore sweet white sundresses, while Barack kept it casual in a short-sleeve, chambray blue button-down.
After the President's speech, the Obamas joined the military families for a picnic on the White House's South Lawn.