More than £20,000 was raised by volunteers and through sponsorship to allow the streets and iconic Mount to be lit in a blaze of Yuletide colour.
A torchlight parade through the town, which included an illuminated tram, led crowds to the Marine Hall gardens where a carol service was performed by local schoolchildren.
Dignitaries including Lancaster and Fleetwood MP Cat Smith, mayor of Wyre Coun Tom Balmain and leader of Wyre Council Coun Peter Gibson were in attendance.
Terry Rogers, chairman of Fleetwood Town Council which organised the event, said: “It was a brilliant night. To see the streets so full of local people supporting the town was superb.
“I want to say a massive thank you to the volunteers as well as our sponsors, none more than BES Utilities, for their generosity which made this event possible.”
Michelle Davidson, director of commercial power company BES Utilities which gave £8,000 to the lights fund, said: “It was great to see the streets so full of families all getting in the Christmas spirit. As a Fleetwood-based company we are proud to be associated with an event which has brought the whole town together.”