Undeterred by cold wind and heavy rain, spectators this year were armed with umbrellas and ponchos in addition to the standard milk crates and step ladders as they staked out vantage points along the Oxford Street parade route from early afternoon.
Top pic: Two men wearing masks of Saddam Hussein (right) and US President George W. Bush, who had recently proposed a US Constitutional amendment to define marriage as only between a man and a woman in response to San Francisco marrying gay couples since Feb 12.
Actuaries were counting participants and would confirm the figure later, he said.
The current world record for the "Y.M.C.A." dance is 13,500 people.
Some 250,000 to 300,000 spectators lined the parade route for the annual colourful parade that almost went bankrupt after the 2002 Mardi Gras season.
Stuart said the total number of onlookers was up by about 50,000 people on the 2003 march. "It was great. Despite the rains, people turned out in their droves," he said.
Opening the parade was a small group of Aborigines in recognition of the 400,000 indigenous Australians who are the most disadvantaged group in a country of some 20 million people followed by the traditional favourite "dykes on bikes" and floats lampooning political and religious leaders. US President George Bush and Australia PM John Howard, who make no bones about their anti-gay stance, were depicted as a gay couple wanting to marry.
The colourful but however politically charged event was led by chief-of-parade Monica Hingston, the lesbian second cousin of Sydney Archbishop Cardinal George Pell who is infamously known for his opposition to homosexuality.
Hingston, who considered her role in the parade a controversial move, was accompanied by her partner of 19 years, Peg Moran. Hingston was a Mercy nun for 26 years and Moran a Franciscan nun for 35 years. Both spent years in Chile working with the oppressed.
In January, The Age newspaper published her open letter to Cardinal Pell, challenging him to look her in the eye and call her "corrupt, debased, vicious, vile, wicked, degenerate". Her move followed Cardinal Pell's refusal to respond to a personal letter from Hingston.
The Age reported that the announcement of her role in this year's Mardi Gras coincides with a Bulletin magazine interview with Cardinal Pell, in which he said he would take an even tougher stance on morality and sexuality.
In the interview, Cardinal Pell again condemned same-sex relationships, saying: "I can't bless them (homosexuals) as persons.
"I can encourage them to do better in their weakness but I cannot bless their wrongdoings any more than I could bless my own wrongdoing."
The event began in 1978 as a political protest but has since evolved into a month-long festival of arts, sports and cultural events; and giant street party although it still features religious and political satire.
After the march, up to 17,000 people were due to head to Fox Studios for the big and loud - by any proportions - Mardi Gras dance party.