Talbragar Street turned into lantern central on Saturday night as 1200 people took part in the Macquarie Credit Union DREAM Festival Lantern Parade.
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Festival Chair Anne Field said it was the "biggest parade ever".
"We think the crowds were slightly up on last year but we haven't finished our count of all the tally sheets," she said.
The Festival would continue to grow, Mrs Field said.
"I can't see any reason why it won't continue to grow. I think think it's got a good name," Mrs Field said.
"We're seeing a lot of people coming in from other centres, people are traveling from Sydney and other centres just for the festival. We're attracting tourists to the city and we've developed some really good, strong partnerships with other providers."
Mrs Field said offering some events to attendees for free was financially challenging but do-able thanks to partnerships with businesses and funding from supporters like Macquarie Credit Union, Dubbo Regional Council and Destination NSW.
The volunteers who run the not-for-profit DREAM Festival will soon turn their attention to the 2020 event.
"We will be meeting next week and debriefing on this year, then in February we start planning all of the events for 2020 which will be our 10th festival," Mrs Field advised.
"We're just there trying to do something good for Dubbo."
