The annual lights, music and ideas festival began at 6pm on Friday with the illumination of the Sydney Opera House, transfixing viewers with a futuristic light and music display featuring imaginary sea creatures lurking deep in the harbour and shimmering plant life.
Organisers are hoping for a crowd of 2.5 million over the 23 consecutive nights of the lights festival.
NSW Premier Gladys Berejiklian said the state was ready to "welcome even more visitors" to enjoy the array of colour and creativity and give the region an economic boost.
"We're hoping to surpass last year's massive $110 million injection into our state's visitor economy and going on indications from hotels and major attraction bookings, we're on track," Ms Berejiklian said in a statement on Friday.
NSW police were also out in force after the Manchester Arena terror attack, which killed 22 people earlier in the week.
While there was no direct threat to Vivid, NSW Police acting assistant commissioner Michael Fitzgerald said police would be a visible presence, with car barriers set up around Vivid areas and sniffer dogs on hand.
NSW Major Events Minister Adam Marshall says this year will be the "biggest and best ever" festival and encouraged people to get out and stroll the streets of Sydney.
No incidents were reported at the festival on Friday night, a police spokeswoman told AAP.
