The fireworks at Friday night's Shellharbour City Council Carols by Candlelight event at Reddall Reserve went ahead as scheduled.
There had been concerns in the lead-up to Friday that the fireworks display may be deemed a fire safety risk.
On Friday, council said if deemed too high risk by the Rural Fire Service, the fireworks would be cancelled.
Council staff met again with the RFS and fireworks provider on Friday afternoon, where it was decided the fireworks would go ahead.
"The provider has a pre-registered exemption, allowing them to run fireworks displays in the event of a total fire ban, provided they are satisfied as to the safety of doing this," a council spokesperson said.
The annual carols event drew thousands of spectators. It included performances, special guests and Santa.