The Queen continued her recovery in hospital today after she was admitted with symptoms of gastroenteritis, Buckingham Palace said.
She was reportedly in "good spirits", despite being forced to pull out of engagements for the coming week.
The Queen was struck with the stomach bug on Friday and admitted to King Edward VII's Hospital in London yesterday as a "precaution", but is "otherwise in good health", according to a spokesman.
She was well enough earlier in the day to meet an employee privately to award her a medal for long service.
The Queen is likely to stay at the hospital for two days, so has been forced to cancel a visit to HMS Lancaster in London today and a reception for MPs and MEPs at Buckingham Palace will now be hosted by another member of the Royal Family.
A two-day tour to Rome with the Duke of Edinburgh, which was due to begin on Thursday, has also been called off to allow the 86-year-old monarch to rest.
A Palace spokesman said: "The Queen is being assessed at the King Edward VII's Hospital, London, after experiencing symptoms of gastroenteritis.
"As a precaution, all official engagements for this week will regrettably be either postponed or cancelled."
The spokesman added: "This is a precautionary measure.
"She was not taken into hospital immediately after feeling the symptoms.
"This is simply to enable doctors to better assess her."
It is believed the Queen will not be taking visitors, to cause minimal fuss.
Downing Street said that Prime Minister David Cameron had passed on his best wishes to the Queen.
A handful of police officers stood guard at the entrance to the hospital last night, while a pack of television crews, photographers and reporters waited outside.
The Queen undertook a number of engagements last week. On Tuesday she met the Archbishop of Canterbury at Buckingham Palace, and on Thursday she presented a host of Olympic stars with honours during an investiture ceremony.