There was music throughout the town, and stalls and street food in Bailey Street and Cross Street, while Festival Square became an ice rink.
Thousands turns out for the amusement rides, curling alley, indoor and street markets, Porthywaen Silver Band, street food and late-night shopping.
The Bailey Head market square rocked with live music from local artists Kizzy Mae and The Bartells at 7.15pm, while Father Christmas was in his grotto at the indoor market for Hope House.
As the evening drew to a close, there was a spectacular, quiet fireworks display in Cae Glas Park.
Oswestry Mayor, Councillor Jay Moore, had two free rides at Festival Square - an igloo slide and curling alley - with donations welcomed to his charity fund, which will be distributed to charities that support mental wellbeing for young people.
The weekend of fun was continuing on Saturday with the town's Christmas parade day. Oswestry Borderland Rotary organised a procession through the town centre of everything from vintage trucks to Christmas-themed floats, with all monies raised donated to local charities.
On Sunday there will be a 5K Santa Run in support of the Lingen Davies Cancer Fund.