The event was to have been held on Saturday - the longest Saturday night of the year - but was postponed due to heavy rain.
While there was initially disappointment, it was quickly forgotten when the event lit up the evening last night.
Despite the calm and relatively warm winter night, the Octagon was awash with light from lanterns based on the theme A Frosty Night.
Lanterns shaped like giant snowflakes, icicles, snowballs, a moon and stars, frosty trees, giant moths, snowmen and women, and the newest lantern - a beautiful white unicorn - did several graceful circuits of the Octagon.
They were joined by a steady stream of musicians, dancers and stilt walkers.
Carnival artistic director Juliet Novena Sorrel said although the "evocative and magical evening" was enjoyed by thousands, not as many people attended the event as last year.
"A lot of people came on Saturday as part of a night out on the town.
"And when it was postponed, they didn't come back tonight [Sunday]. But families with children definitely came back.
"It wasn't the longest night, but it was much better weather," Ms Sorrel said.
The evening concluded with a spectacular fireworks display and a fire dance performance.
