With sequins and glitter sparkling, hot pants and rainbow tutus galore, thousands have turned out in Sydney's CBD for the 42nd Gay and Lesbian Mardi Gras.

Key points: An estimated 200,000 people turned out to watch the parade

An estimated 200,000 people turned out to watch the parade Queer members of the NSW RFS, Fire and Rescue NSW and the State Emergency Services marched

Queer members of the NSW RFS, Fire and Rescue NSW and the State Emergency Services marched The Mardi Gras parade has been described as a "powerful, political moment"

But the political protest element of the event was still strong with three people hijacking the Liberal Party float, forcing police to intervene.

A group of marchers wearing navy blue jumpsuits with the words "Department of Homo Affairs" across the back, along with others donning giant Scott Morrison masks, attempted to block the Liberal Party float behind it.

Police intervened to drag one member of the group from the parade.

It is believed the group were not on the official Mardi Gras line-up.

NSW Police said three people — two aged 31 and one aged 35 — were removed from the parade ground following "unauthorised entry" about 10:00pm.

"Their removal was done to ensure the event could continue to proceed in a safe and peaceful manner," NSW Police said.

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The protest tried to block in the Liberal Party float. ( ABC News: Kevin Nguyen )

Police lead away one of the protesters. ( ABC News: Kevin Nguyen )

An estimated 300,000 attended the parade on Oxford Street this year which organisers say is similar to last year's turnout.

More than 12,600 participants marched on almost 200 floats.

Festivities began with an Aboriginal smoking ceremony and Welcome to Country by Graham Simms, wearing a glamorous gold sequenced dress.

Clover Moore rode in a convertible with Alex Greenwich. ( ABC News: Kevin Nguyen )

A woman dances in her spectacular gold outfit. ( ABC News: Kevin Nguyen )

As they always do, the Dykes On Bikes kicked off the parade proper with more than 150 bikes revving and tooting their way down Oxford Street.

Among the crowd were Federal Opposition Leader Anthony Albanese, Sydney City councillor Christine Forster and her wife Virginia Edwards, and ABC chair Ita Buttrose.

Ms Forster said this was the first year she and her wife had not marched in the parade.

"It's the first time we've actually seen the Dykes on Bikes — that was really fun," she said.

"It's always a terrific moment for Sydney. It brings so much colour and life and positivity to the city.

"We have had a pretty tough few months in Australia with bushfires and coronavirus and this is a good news event."

The 78ers, who marched in Sydney's first Mardi Gras 42 years ago, drew huge cheers from the crowd.

The Mardi Gras parade drew thousands of people. ( ABC News: Kevin Nguyen )

Dykes on Bikes again kicked off the parade. ( ABC News: Kevin Nguyen )

As did Perth-based suicide prevention charity Haka for Life, which did the haka down the parade route while offering supportive words to those who may be suffering depression.

But some of the loudest cheers were for NSW Rural Fire Service (RFS) and their emergency services counterparts who have been battling blazes for months.

RFS volunteer Samara Moat, from North Rocks, said she was having an amazing time at her first Mardi Gras.

"It's been absolutely fantastic to let our hair down," she said.

Fire and Rescue NSW Assistant Commissioner Paul McGuigan said the event had been wonderful after a busy year and the crowd had been right behind them.

"We get fantastic support every year but this year is really special," he said.

"It's a really nice way to celebrate what's been a challenging year with the whole community coming together."

Members of the SES take part in the parade. ( ABC News: Kevin Nguyen )

A woman dances as part of the Trans Pride Australia float at the Sydney Gay and Lesbian Mardi Gras. ( ABC News: Kevin Nguyen )

British stars joins parade

British pop star Dua Lipa briefly joined the parade, dancing and posing for photos with marchers from Surf Life Saving Australia as her song One Kiss blasted on the speakers.

Sam Smith also made a brief appearance marching to their song Tonight before heading into the VIP area.

Marchers also danced to Whitney Houston, Lizzo, Kylie Minogue and Abba.

British singer Sam Smith attends the Sydney Mardi Gras. ( ABC News: Kevin Nguyen )

British pop star Dua Lipa poses with lifesavers. ( AAP Image: James Gourley )

Labor's Kristina Keneally and Penny Wong joined the Rainbow Labor float.

Sydney Lord Mayor Clover Moore rode in a convertible with Alex Greenwich for the City of Sydney's float.

About 60 ABC employees marched in the organisation's first Mardi Gras float, including managing director David Anderson and News Breakfast weatherman Nate Byrne.

Managing Director David Anderson and weatherman Nate Byrne on the ABC Mardi Gras float. ( ABC News: Kevin Nguyen )

Drag king Guy Alias said it was his second time at Mardi Gras, having come out "a little later in life".

"Mardi Gras means absolute pride, joy and acceptance — just being loved for who you are and a complete excuse to be fabulous," he said.

Jack Williams from Naisda Dance College on the Central Coast took part in the smoking ceremony.

The 20-year-old said he considered Mardi Gras to be a celebration of his ability to overcome adversity earlier in his life.

People dance on one of the many floats. ( ABC News: Kevin Nguyen )

Two women show their love for Mardi Gras. ( ABC News: Kevin Nguyen )

"I grew up in foster care and it was pretty harsh. I got tossed around a couple of homes because they found out I was gay," Mr Williams said.

"It's an achievement to say I can do this, I can be me and not worry anymore.

"Mardi Gras is Christmas, it's the Oscars, it's Halloween, it's my birthday all rolled into one.

"It's the greatest night to be someone like me."