While the rainbow flag may be flying all over the city to celebrate Sydney's 40th Gay and Lesbian Mardi Gras this weekend, watch for a new fashion trend among the glitter and the sequins: the rainbow hijab.

MOGA, a Muslim-owned fashion label that produces hijabs and head scarves for Islamic women, first created the "Pride" headscarf during last year's same-sex marriage debate in a show of support for the LGBTQI community. The silk scarf sold out within six days. The Melbourne-based fashion company, which has a large Islamic following, has now produced a special Mardi Gras-themed headscarf, in what's believed to be a first for a Muslim-owned fashion label.

Zali Ghelardini, Kalida Edwards, Maya Weiss and Mable Syrup model the rainbow hijabs they will wear for the Sydney Gay Mardi Gras. Credit:Justin McManus.

"Our fans range from trendy Muslim 'hijabsters' to festivalgoers to drag queens," said Azahn Munas, the creative director of the Melbourne-based company.

"We really weren't sure how the religious community would react because we thought a lot of Muslims were intolerant to the gay and lesbian community.