More than 5,000 people take part in the celebration each year along with hundreds of volunteers. There were 26 floats and lots of marching bands with drums and fireworks.
This is the "Year of the Rabbit" and the lunar calendar year is 4708.
"It's the first time. Can you believe it? I have been living in San Francisco for 27 years and it's the first time I come to the Chinese New Year's," Rachel Garcia told ABC7.
"We like it because we get to see the all the different floats and the kids get to see all the people and wave out like they are, you know, rock stars or something. It's fun. Everybody is screaming at you and they have a good time," Melinda Allen said.
Saturday's parade lasted about 2.5 hours and capped two weeks of Chinese New Year events.