Organisers hope love shone like a beacon on Saturday from Sydney's 29th annual Gay and Lesbian Mardi Gras parade.

New South Wales state police said about 350,000 people packed the sidewalks of Oxford street - the centre of Sydney's gay scene - to catch a glimpse of the colourful floats bearing messages both political and playful.

The yearly parade began as a street demonstration in 1978, but has since morphed into one of the city's biggest outdoor parties, attracting thousands of spectators from around the world.

British actor Rupert Everett and 250 men dressed as pop singer Kylie Minogue were among 8,000 revellers who marched through Sydney late Saturday for the 29th annual Gay and Lesbian Mardi Gras.

Everett, an openly gay actor who has often complained about Hollywood's homophobia, was the parade chief.

"I think it's time for us to give back, to care about each other, and to fight for others - gay and straight - who . . . don't have a voice just when they most need to be heard," said Everett, who played Julia Roberts' gay friend in "My Best Friend's Wedding" and also starred in 2002's "The Importance of Being Earnest."

A colourful court of queens and princesses attended by Bears (hairy gay men) and leather-clad dudes revved by the famous Dykes on Bikes celebrated under clear, warm skies.

One of the largest displays featured some 250 Minogue impersonators dubbed the "Impossible Princesses" and danced to the pop princess' greatest hits, while another float titled the Unkultured Klub of Karma Kleaners honoured the former Culture Club lead singer Boy George.

Dressed as a mirror ball, Sydney's Ross Gray said the Kylie float was the largest in mardi gras this year with an international cast of devotees.

"As soon as we mentioned that we were doing a Kylie float this year we were just inundated with people who wanted to participate. "More so than any other year we have put a float together," Mr Gray said.

The mardi gras chair, Marcus Bourget, said the parade was just as important as ever. "This iconic event which provides visibility and pride of gay and lesbian people throughout the world, is a beacon of love, acceptance and tolerance," he said.

"First and foremost it keeps gay and lesbian rights on the agenda."

Mr Bourget called on Prime Minister John Howard to formally recognise the event and wish revellers a happy mardi gras. The theme of this year's event is Objects of Love.

But somewhere in the parade, Hottie Howard and the Global Warmers were facing off against Cool Kev who was spreading his message about global cooling.

Mr Howard and Opposition leader Kevin Rudd are among many faces lampooned or lauded by tonight's floats.

Marie Antoinette served cake, and a gang of Vicky Pollards, from the British comedy Little Britain, stomped up and down the streets pushing babies' prams.

Movies, such as Dream Girls, Little Miss Sunshine, the Flintstones and Priscilla provided inspiration, while Brooke and Ridge from the US soap The Bold and the Beautiful made their first appearance at the parade.

Also debuting in this year were entries from Surf Life Saving Australia and the ANZ Bank.