It is the first time a special outdoor public event has been organised in the city for the Indian Festival.
Diwali symbolises victory of good over evil and is celebrated by Hindus, Sikhs and Jains around the world.
The colourful festivities featured fireworks, live music, food, dancing lanterns, a laser display and Scottish ceilidh bands.
More than 125 Diwali lanterns, some of them created by children, were hung up in the marquees.
A demonstration featuring 500 large sparklers was due to round-off the event.
Hundreds of people in Edinburgh have been celebrating Diwali at a special event in Princes Street Gardens.