Lanterns on the Lake lit up Wentworth Falls Lake on Saturday, April 13.
Event spokeswoman Camille Walsh said "the free event is an opportunity to join as a community and create an unforgettable spectacle of light and a celebration of gratitude".
"After an afternoon of entertainment and as dusk falls participants are invited to launch floating lanterns on to the lake."
Locally hand-made Blackbird Soy Candles were available for sale with volunteers assisting lantern launchers at designated signposted areas.
Entertainment was by provided by Hands, Heart and Feet, Spooky Men's Chorale and Heather Lee with Kim Cunio. Interactive art installations were created by Mandy Schoene-Salter and Nick Baldas. Varuna Writers Centre also presented a selection of poetry readings.
Upper Blue Mountains Rotary Clubs held a sausage sizzle.
Lanterns on the Lake is a "leave no trace" event, Ms Walsh said.
Lanterns on the Lake was supported by Blue Mountains Council's arts program via the Varuna Writers Centre and sponsors include Scenic World, Catriona Swan from Belle Property Leura, Blue Mountains Mazda, and Hope Tree Framing and Art.