The organisers of Hobart's Greek Estia Festival have hailed this year's event as the busiest in the celebration's 23-year history.

Thousands streamed through the gates to enjoy Greek food, traditional dancing and plate smashing.

Greek culture in the state is thriving and even the weather was reminiscent of the Mediterranean.

Festival co-chair Irini Kalis said Estia was a celebration of Greek culture which revolved around family.

"You get a little bit of a peek into our backyard," she said.

Thousands streamed through the gates to enjoy the celebration of Greek culture. ( ABC News: Angela Ross )

"Generations often live together or they have a lot to do with each other, grandparents have a lot to do with their grandchildren.

"They teach the traditions, so we have lots of women who've been teaching us how to make the sweets."

The official Greek population in Tasmania stands at about 3,000, but there are estimates it could be closer to 5,000 people.

Ms Kalis believed the population in Tasmania had increased rapidly over the past few years with many people returning to Australia to escape financial hardship and the migrant crisis.

"Some people have had dual citizenship for quite a number of years so they've used that as a link to come back to Australia to find work and for their children's sake," she said.

"So once again it's almost as if history is repeating itself and people are coming back because of poverty and famine as they had in the early days when people came to Australia."