More than 7000 serving and former defence force members took part in the march after the traditional dawn service at a packed Martin Place on Tuesday to commemorate the 108th anniversary of the Gallipoli landings in WWI.
Speaking at the Anzac Memorial in Hyde Park, NSW Governor Margaret Beazley urged Australians to properly recognise all defence personnel, including Indigenous veterans and those who served in Korea and Vietnam.
This year also marks the 50th anniversary of the formal conclusion of Australia's involvement in Vietnam.
"Like those who have served in other conflicts, few returned unscarred by the trauma that war brings," Governor Beazley told a crowd around at the memorial's Pool of Reflection.
"It was left to them to bring to light the lifelong effects that their service and their treatment in the aftermath caused."
It came as the NSW government said it would consult with Iraq and Afghanistan veterans to erect a new memorial dedicated to the recent Middle East conflicts.
"Throughout this consultation, we want to hear what is working, what else needs to be done, and know of any gaps in support or programs - everything is on the table when it comes to discussing how we can support and recognise our Middle East veterans," Veterans Minister David Harris said.
Wing Commander Ajitha Sugnanam said it was a proud moment to be taking part in her 13th Anzac Day march.
The Middle East veteran welcomed the NSW government's announcement on the memorial to those who served in Afghanistan and Iraq.
"It's beautiful," she told AAP.
"There are so many people who served there that need to be remembered, whether it was productive or not."
Earlier Governor Beazley and Premier Chris Minns were among those to lay wreaths at the Cenotaph in Martin Place before daylight.
First held unofficially in 1927 by a handful of returned soldiers and an elderly woman, the dawn ceremony was the forerunner to services run by 320 RSL sub-branches across NSW.
Glenda Rixon wore the medals of her late father Henry "Harry" Rixon, a Korean War infantryman, and was touched that the 70th anniversary of the Korean Armistice Agreement was noted in the Martin Place service.
"Usually they don't say anything - it's like it's the forgotten war, " she told AAP.
"I'm really proud of my father, he passed away eight years ago. It's a special day, we used to always watch him march."
Ms Rixon said her father didn't speak much about his 13 months abroad but she recalled the warmth and mutual understanding that flowed through Anzac Day reunions.
"He'd say 'we were like brothers' ... they had to rely on each other."
The First Field Ambulance Association's Lieutenant Colonel Victor Tsang said he used the service to remember the sacrifice of all Australians.
"It's important for me, because as a migrant, we also like to contribute ourselves to the country," the 32-year veteran told AAP.
They were among thousands seated or standing in near-darkness from George Street to Castlereagh Street as hymns, anthems and poems continued the 96-year tradition around the cenotaph.
Diplomats from Belgium, the United Kingdom, Canada and Turkey also laid wreaths, while a hymn in Maori by the Sydney Maori Choir marked New Zealand's sacrifice.
Aircraft flyovers in coastal regions were conducted by the RAAF and the Wollongong-based Historical Aircraft Restoration Society Museum, with the museum taking a Spitfire Mk IX, Grumman Tracker S-2G, Dakota C-47 to the skies.
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