At least 100,000 fireworks were used in the spectacular display.
The fireworks were part of the $20 million party to mark the official opening of the Palm Atlantis Hotel.
Guests were treated to a spectacular light show as well.
Among the celebrities who attended were Robert De Niro, Charlize Theron and Lindsay Lohan.
The display could be seen for miles and was three times bigger than the one at the Beijing Olympics.
Celebrity chef Giorgio Locatelli was one of the people who catered at the party.
The fireworks display was certainly a feast for the eyes for residents and A-listers alike.
Kylie Minogue and Mawal Al Zoghby performed for the 2,500 invited guests.
The crowds got so big that it caused a traffic bottleneck when the fireworks had finished.
Thousands of people lined the beaches near the Palm Jumeirah to watch the display.
The display lasted for around 15 minutes and could apparently be seen from space.
Fireworks were spread out across the whole of the Palm Jumeirah.
Palm Jumeirah residents were told to return home by 4pm to avoid traffic during the oficial launch party.
The lavish bash was strictly invite only and featured the cream of local society as well as international celebrities.
No doubt everyone enjoyed the lavish and colourful fireworks display that lit up the Dubai sky.
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