Thousands of people lined the town's High Street to mark 50 years since the event was re-started.
And to celebrate five decades of fun in Shifnal, 25 previous carnival queens gathered to mark the occasion.
A fireworks display was held in the evening, along with a specially lit carnival queen float.
Sarah Richards, chairwoman of the carnival committee, said: "I'm a Shifnal girl born and bred. I've grown up with the carnival.
"This year there was a lot more floats this year, and the fireworks display as well. It was great.
"We were expecting thousands to turn out, especially with the hot weather. They line the street in their droves.
"We knew this year was going to be the most important year, because it was the 50th."
It took about 11 months to plan this year's festivities.
WATCH highlights from this year's carnival
In a few months time the carnival committee will meet again to start putting together next year's show.
But it will be without one of their mainstay supporters.
Gerald Nickless, president of Shifnal Carnival committee, will be stepping down.
He was among those that revived the carnival after it had lapsed.
He said he had always enjoyed the event as a child, and had wanted to bring that back to the community.
And five decades later it is still going strong.
"I just want to take a big thank you to Gerald, who resurrected Shifnal Carnival 50 years ago," Sarah said. "He's kept it going all these years."
Carnival queens from the last 50 years – many of them still living in Shifnal – gathered at the village hall to catch up and swap stories.
The longest reigning queen in attendance was Judy Kinsey, previously Walpole, who took the role in 1971.
The 63-year-old spent £6 on her dress for the event, the equivalent of about £90 in today's money.
She said: "They held a disco in Oakengates Town Hall and the queen was picked there from a shortlift.
"It was just fun. You got picked as the queen and they gave you a fiver for a dress. Then you just went on the float.
"The retiring queen usually crowned the next queen – but in my year they picked a politician from Telford. I was cross about that."
For the event, Judy managed to dig out her original sash.
"It was in a chocolate box in the attic," she said. "It never came out."
She had a bit of advice for any young women wondering whether they should get involved.
"Go for it," she said. "It's a bit of fun and it's tradition. It brings the town out."
Two pairs of mothers and daughters turned out for the reunion.
Lorraine Price, queen in 1975, and Sophie Price, queen in 1996, as well as Kim Buttery, from 1990, and her daughter Demi Watson, from 2007.
Lorraine said: "It was a very big thing to do at the time.
"I can remember it was a very packed evening. I went in for it twice and was named queen in 1975, but didn't get anywhere in 73. I did meet my husband then though – we were married in 75."
"The carnival has always been such a big thing, you could always hear the sound of the fair," Sophie said. "There was always that excitement."
Kim said: "I came down with my sister-in-law, went into the toilets and came out and one of my best friends had gotten me a number.
"I had a little daughter at the time, so I hadn't come down for that. They put me into the row, but I won it – I was over the moon."
Demi said: "It was always a tradition for the girls who were 15 and older to go for it.
"I grew up in Shifnal. It was an honour. I was just 15 and it made my year."