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It started out as a protest march in June 1978, with dozens of arrests and police violence.
Now it's a 17 day long festival that culminates with a parade.
The Museum of Australian Democracy says the Sydney Mardi Gras contributes $30 million dollars to the city’s economy every year.
Mardi Gras CEO Gil Beckwith says it all goes to show that the event has come a long way.
"We have that recognition from politicians, from other communities, about how important we are to the sort of fabric of Sydney and Australia, and I think particularly after the Sydney World Pride, we've actually really sort of cemented ourselves in the fabric of Pride around the world. I think that's so important."
This year, more than one hundred dance, music and theatre events have been taking place all over the city, celebrating the LGBTIQ+ community.
But it’s the end of the festival that is the highlight everyone is waiting for: Saturday's parade on Oxford Street in the CBD.
Organisers are expecting 200 festival floats, 12,000 marchers, and 250,000 spectators.
From the Mature Aged Gays, Australian Rainbow Veterinarians, Parents for Trans Youth Equity, Please Don’t Forget Our Homeless group, and many others, the community floats reflect the very diverse facets of the people who make up the LGBTIQ+ population.
It's the annual tradition for the so-called 'Dykes on Bikes' group to open the parade, riding from Hyde Park in the city centre to Moore Park.
But for the glamour and glitz to come out on parade night, there is a huge amount of behind the scenes work that needs to be done in the Mardi Gras workshop.
The workshop employs 10 permanent, highly skilled, staff and there’s also an army of volunteers with various talents.
Liz Carter has managed this hive of activity for the past nine years.
"I think the hardest thing for us is always time, because although we have a good amount of time, it's always the level of detail and the level of quality that we want to put in. Everyone is so passionate about what we do and conveying our message, which is incredibly important to people. It's not just a celebration, it's about what we're saying to people and the world around us, and so getting that message defined into the best quality is really very important."
There's still controversy surrounding this year's event, though.
Charlie Murphy, from the group Pride in Protest, has criticised how police worked on the murders of Sydney couple Jesse Baird and Luke Davies, and said an apology from NSW Police Commissioner over the handling of LGBTIQ+ hate crimes between 1970 and 2010 rings hollow.
"After years of campaigning, the New South Wales Police have now been dis-invited from participating in the Mardi Gras Parade. But the fight for safety and justice in our community does not end here. We demand the immediate disarming of New South Wales Police, banning police use of all firearms, tasers, pepper spray, batons."
The decision to ban the police from the parade has now been reversed.
The Mardi Gras board reached an agreement with Police Commissioner Karen Webb for officers to march - as long as they don't wear their uniforms.
The Commissioner has said she was dismayed with the initial ruling, and is committed to continuing to strengthen the relationship between the police and the LGBTIQ+ community.
"We're not dealing with gay hate crime here. We're dealing with a domestic homicide. And I'm disappointed that the position that Mardi Gras board has taken on this issue... I think this time, more than any in our society, it's time to come together. We're talking about inclusion. We're talking about diversity and to exclude part of that community, I think sends the wrong message."
Advocates say there's been a lot of progress over the last 50 years, from decriminalization, anti-discrimination laws, transgender legal recognition, the removal of a military service ban, Parliamentary representation, adoption rights and same-sex marriage legalization.
Gil Beckwith says on a day-to-day basis, the journey to total equality still seems fraught.
"I receive emails, we receive homophobic stuff on our websites all the time. Every day, every day we cop it. We're strong. We're resilient. We're working in our community. I can only imagine what a young person feels or someone that lives out in the suburbs, they must feel awful. I'm 60. I don't feel awful. Whatever anyone can say, it's already been said to me before, but I have that on my side where the young people that I work with don't, and I can see how it drains and it takes away from their joy of life."
But she says the Sydney Mardi Gras remains a relevant and a powerful yearly statement for the LGBTIQ+ community.
"For us, it's really important to provide that messaging to people that we're here. We're not different. We love, we live, we cry, we laugh just like anybody else, but we just want to be celebrated and embraced and accepted for who we are. It's really, really important."
