Ahead of the fireworks Sydney Lord Mayor Clover Moore said it would involve more than 80,000 pyrotechnic effects, and advised those who did attend to be vaccinated, use QR codes and practise social distancing while wearing masks.
Some 17,000 tickets had been booked to watch the fireworks on Friday, with many vantage points still having tickets available before the fireworks launched.
Crowd numbers were expected to be down on the usual attendance given a recent surge in coronavirus cases.
But those who turned up on an otherwise ideal 22C summer night were treated to colourful explosions at 9pm on both side of a lit-up Harbour Bridge that lived up to the lord mayor's earlier promise.
"Sydney's New Years Eve celebration is one of the largest and most technologically advanced fireworks display in the world," Ms Moore said on Friday.
"It promotes Australia and our beautiful city on the global stage."
Before the midnight display, a "sea of blue lights" is set to dance above the city at 10pm to acknowledge the work of frontline workers during the pandemic.
The show will be synchronised to a soundtrack created by local electronic music duo The Presets.
NSW Tourism Minister Stuart Ayres said this year's celebrations would acknowledge the community's resilience.
"There will be less people out around the city because people are taking personal responsibility for their own health and making those conscious decisions to stay home," Mr Ayres said on Friday.
He asked people to stay safe by following public health orders, social distancing and wearing a mask, particularly when indoors or "where you feel it's required".