12 February 2017 Last updated at 11:29 GMT
The show which winds through the city's Chinatown district is one of the largest in the United States.
It features more than 100 groups with elaborate costumes, brightly coloured floats, lion dancers, marching bands and more.
The parade has been running in San Francisco since the 1860s - not just to welcome in the Lunar New Year, but to also educate people about Chinese culture and traditions.
One of the highlights was this 81m Golden Dragon that needed a team of more than 100 people from the White Crane martial arts group to carry it through the city!
Check out this video of massive golden dragon which led San Francisco's annual Chinese New Year parade.