It headed west on Market Street, then to Geary, down Post, and ended in Chinatown on Kearny Street.
More than 100 entrants took part in the procession. There were dozens of floats, marching bands, and lion dancers along with city officials and Miss Chinatown USA.
Some of the spectators have been coming for more than a decade.
"Never gets boring," San Francisco resident Karen Anderson said. "It's the best, it's at night. There's lots of noise and lights."
The parade ended with the golden dragon that's 268 feet long. It takes a team of more than 100 men and women to carry it.
This is the largest parade of its kind outside of Asia, and has been taking place in San Francisco for more than 150 years.