In historic Harbour St and the bottom of Wansbeck St, the festival was in its third year and initial indications were numbers were significantly up on previous years.
Events at the festival have grown each year, and Friday was no exception with an ambitious programme of fire-themed entertainment having a greater arts and lighting focus.
''The Victorian architecture of Harbour St provided a stunning backdrop for light and projection,'' she said.
Some of the special effects dazzled the crowd of several thousand, especially those from international spatial architects Out of the Dark, whose lighting display on the old Harbour Board building was a highlight.
Mrs Kennedy said Oamaru on Fire was a unique event. Few towns had the setting to create such a spectacle.
There was a big contingent of out-of-town visitors, including riders on their way to the Brass Monkey Rally, people in town for the Steampunk NZ Festival, and 95 train passengers from Dunedin.
''The potential of this event to become an identifiable marketing brand for Oamaru is becoming a reality.
''I have received only positive comments. Oamaru was transformed into a party town on Friday night; it was a wonderful spectacle,'' Mrs Kennedy said.